Iwoca, one of Europe’s largest small business lenders, has published its SME Outlook 2023 research, which reveals that small businesses in the UK are most concerned about the prospects of recession, inflation, and high operating costs.
As the UK economy experiences slow growth and inflation remains a significant issue, over 43 per cent of small business owners identify a recession as their top concern in 2023.
Inflation remains the primary challenge for over 38 per cent of small businesses due to the soaring prices of energy, raw materials, and the scarcity of labour.
Additionally, decreased consumer spending (29 per cent) and increased business running costs (38 per cent) are also cited as key worries for UK small business owners in 2023.
The research also indicates that 76per cent of small business owners are concerned that energy bill support for businesses is being reduced in the first half of this year.
Furthermore, a third (32 per cent) of SMEs expressed significant concerns about the potential decrease in Government energy support.
The study also found that a quarter of small businesses (25 per cent) anticipate their turnover to decline in the next twelve months, a third more than last year’s figures.
Moreover, over 43 per cent of SME owners think they will personally be worse off by the end of 2023, up from a third a year ago.
Only a quarter (26 per cent) of small businesses expect their revenue to grow over the next year, down from 28 per cent at the start of 2022.
During these uncertain times, small businesses with concerns about the future growth of their business and the possibility of facing insolvency due to poor economic growth should seek professional advice immediately.
We work with a wide range of firms to help their clients understand the risks they face and provide plans to help them recover.
If you would like to find out how we can assist you with insolvency matters, please contact us.