However, the survey has found that there are positive signs for some businesses, with almost a third of firms actually reporting a positive impact on revenues.

Scottish SMEs are optimistic that despite the current pandemic, a recovery is on the horizon. 51% think that their businesses will fully recover in under 18 months, compared to 37% across the UK, reflecting particular confidence from Scottish SMEs.

In total, 47% of SMEs think that the economic package rolled out by the Government has been favourable to them, compared to just 18% who don’t, with the Coronavirus Job Retention Scheme (38%) and the deferment of VAT and self-assessment payments (38%) proving most popular.

However, the true impacts of this stimulus package remain to be seen following reported flaws and bottlenecks with the delivery of funding from the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS).

The survey has also indicated that despite the negative impact to their business revenues, an overwhelming 82% of Scottish SME decision makers feel that the UK should have entered lockdown earlier than it did, according to the inaugural Newable Small Business Confidence Index.

When it comes to changing working patterns, 69% of Scottish SME decision-makers are enjoying working from home and 40% have reported no change in productivity. Only half of respondents, would like to work from home permanently given the choice, with lack of human interaction (62%), daily routine (31%) and team contribution (29%) among the things missed most. The results suggest that we may see a ‘flight to flexibility’ – with companies shifting to hybrid working styles.

Chris Manson, CEO of Newable, said: “These are unprecedented and hugely challenging times for the almost six million SMEs that form the backbone of our UK economy, however history has shown repeatedly that resilience and adaptability can prevail.

“It is reassuring to see many Scottish businesses prioritising collective public health over revenue, a sign that empathy and human nature are here to stay. Meanwhile the stimulus package unveiled by the UK government has provided a lifeline for many small businesses - time will tell whether it has been enough and it will be interesting to see how the package evolves in the mid-term as the ‘new normal’ develops.

“The pandemic has accelerated the evolution of the way we work. Flexibility has long been the cornerstone for sectors like technology but we are now seeing a far wider range of businesses surprised by how the wheels have continued to turn despite not all having staff in the office. There will always be a need for human interaction but we are waking up to a new normal where needing 100% of the workforce in one place 9-5 is simply unnecessary for many businesses. Hybrid working is likely to take off and we expect to see conventional office portfolios shrink as space is revaluated and repurposed to be more flexible.”

The exclusive Newable Small Business Confidence Index reflects the views of small businesses across a wide variety of sectors including marketing, PR, financial services, travel and recruitment.

• Read all of our articles relating to COVID-19 here.