Impact of Covid-19 on Community Businesses and Responses

Community businesses in England faced disruption and uncertainty during the Covid-19 pandemic. This research explores their experiences, including access to support, operational changes, financial impacts, and outlook for the future. Despite challenges, many businesses adapted by reducing workforce costs, offering remote services, and staying resilient in the long term.

• Community businesses
• Covid-19 impact
• England
• Support for businesses
• Business adaptations

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1. Community businesses & Covid-19 Power to Change and The Young Foundation Amelia Byrne, Eve Avdoulos & Zo Wilkins

2. Power to Change: Creating better places through community business Power to Change is an independent charitable trust that supports and develops community businesses in England. Community businesses are locally rooted, community-led, trade for community benefit and make life better for local people. From pubs to libraries; shops to bakeries; swimming pools to solar farms; community businesses are creating great products and services, providing employment and training and transforming lives. powertochange.org.uk

3. The Young Foundation Our mission is todevelop better connected and stronger communities across the UK. Understanding Communities We research in and with communities to increase your understanding of community life today. Involving Communities We offer different methods and approaches to involve communities and grow their capacity to own and lead change. Innovating with Communities We provide tools and resources to support, innovation to tackle the issues people and communities care about. https://www.youngfoundation.org

4. Covid-19 research programme Community businesses are at the heart of everyday life, run by and for local people. As the Covid-19 pandemic swept across the country, community businesses faced disruption and uncertainty while feeling an additional sense of commitment to their local community. This research attempts to understand how businesses have been impacted by, and adapted to, the Covid-19 pandemic. Community Business Market survey Refocused our Community Business Market survey in 2020 around impacts of Covid-19 operations, finances, workforce, outlook, etc. Fieldwork in May and June 2020. 449 responses received. Covid-19 diaries Followed 27 community businesses over 12 weeks to understand the real-time impacts of Covid-19. Businesses responded to weekly tasks using an online research platform. Themes were discussed in advanced, but also adapted to what was happening as the situation unfolded.

5. What did community businesses tell us Access to support LAs/councils: 76% supported by local authorities or councils. 30% supported by central gov. 25% support by other CBs. Initial shock Operations: 15% remained fully open, only 1% closed for good. Workforce: most (69%) took action to reduce staff costs including furloughing (57%). 57% saw reduced volunteer numbers. Financial: 79% did receive some kind of financial support, including grants and advice. After the pandemic Outlook: most (73%) are not confident about their future financial prospects. During the pandemic Activity: reduction in activity for 65%. A quarter experienced increased activity (shops). Although a third expect to resume full operations. Adapting: nine in ten (89%) adapted or changed operations. Including offering services remotely, responding to need and delivering to homes. Most see the adaptations made as staying in the longer term.

6. What did community businesses tell us Community Hub, North West Focusing on arts, leisure, and offering trainings to their local community Youth Services, South West Focusing on information, advice and employability support, alongside a community caf that employs local young people Covid-19 impact: Lost all trading income and furloughed most of their staff Diversified their services to coordinate a Covid-19 response with the local authority and another community organisation Worked with vulnerable community members to provide a shopping service, foodbank parcel deliveries, prescription deliveries, and coordinated a mutual aid network for emotional support Covid-19 impact: Closed the caf in their youth centre Furloughed three members of staff Struggled to shift to digital realm because they did not have the equipment, platforms or skills that were necessary Worked with other local organisations and their local authority to coordinate the local Covid-19 response "There are a lot of fabulous human beings in the world. I think there was more willingness to help than the systems could cope with. So we (the wider community) are building new systems." "[We'd like] to continue to work closely with the local council, health care providers, local community groups and all the other organisations we have worked with closely over the past five months "

8. What did community businesses tell us "Digital service delivery has delivered some positive outcomes in terms of more flexible access, service innovations, and cost and staff time efficiences they also have the potential to extend our reach and enhance our consultation and engagement processes" "The close links we have with the [Local Authority] staff who work in our area meant that we could easily get to know who was most in need as well as the support they needed" "The immediate impact for us was to make sense of what was happening and to respond in a safe but effective way to the needs of the families we serve" Director, Education Services Manager, Cafe CEO, Arts Centre "We had been constantly running to catch up, and the lockdown has provided a very welcome moment to pause! The initial panic and concerns about surviving have given way to a more positive reflection about how we operate, and how we want to operate going forward." "Opening up has been expensive. Staff to customer ratio is higher, running costs are higher and income is lower as seating is limited. Our biggest concern is what happens after August and most importantly what will happen in the winter when the furlough scheme ends and chances of lockdown are higher." Manager, Environmental service provider and cafe CEO, Community Hub

9. Implications Fed into design and planning for funding programmes Support needs will need to continue beyond these initial months Covid-19 has changed the way that community businesses interact with the residents in their communities and other community businesses as these relationships were fundamental during the lockdown Many community businesses have had the opportunity to rethink their purpose, business models, and who they work with

10. Questions? Power to Change and The Young Foundation Amelia Byrne, Eve Avdoulos & Zo Wilkins