Small businesses are bracing themselves for even tougher times ahead as they face an 85% drop in the energy support package as well as rising tax and wages in April.
A survey of over 2,000 UK finance brokers by small business lender Iwoca has found that one-third of them say their SME clients are most concerned about rising business running costs. The findings indicate that the top SME concerns in 2023 are:
- Increased business running costs (32%);
- Recession (12%);
- Having to close their business (11%);
- Higher interest rates (11%);
- Access to finance (9%);
- Ability to hire or retain staff (7%).
Colin Goldstein, commercial growth director at Iwoca, said: “Whilst forecasts tell a more positive than expected story for the UK economy this year, the reality on the ground for many SMEs will still be difficult, characterised by high costs and reduced consumer spending.”