‘Most small businesses feeling squeeze as rising costs emerge as biggest challenge’

Most small business owners are worried over the effects of cost of living crisis on their businesses with rising costs emerging as the biggest challenge.

According to a survey of over 600 small business owners, commissioned by small business insurance provider Simply Business, over four in five (81 per cent) small business owners are worried how the cost of living crisis is affecting their business, with two thirds (65 per cent) cited rising costs as the biggest challenge to their business heading into 2023.

A quarter (26 per cent) among those surveyed were worried they simply won’t be able to pay their bills in 2023.

Other worries include the number of sales and customers available in the New Year (43 per cent), while one in three (31 per cent) small business owners are worried about the uncertainty over inflation and interest rates. There is also concern around growing supply chain issues, with a fifth (22 per cent) worried about the supply and material shortages caused by the ongoing geo-political unrest.

The survey result further mentions that about 15 per cent have no confidence in their business heading into 2023. Three in ten (28 per cent) say they’re unable to plan or budget due to uncertainty, a tenth (10 per cent) have been unable to order stock and three in five (60 per cent) say their profit margins are down.

Commenting on the survey results, Alan Thomas, UK CEO at Simply Business, stated that the self-employed are feeling the pressure of the current economic climate more than most, with some small businesses not receiving the much-needed boost during the festive trading period.

“SME owners are inevitably feeling the squeeze as they struggle to pass on rising costs to their customers.

“The New Year is an opportunity for a fresh start but without support, at both governmental level and from hard-working consumers willing to shop locally, there is concern that 2023 will be even tougher.

“Small businesses account for 99 per cent of all British businesses, contributing trillions of pounds a year to the economy in turnover. The recovery of our economy and communities is directly linked to their success. We must support small businesses all year round, and there’s no better time to start as you mean to go on in January.”