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An American Express study has found most small business owners have expressed their intent to grow their businesses over the next 12 months.
The survey, involving 1,000 UK small business owners and decision-makers, revealed that 79 per cent of small company owners aim to develop their businesses, a 13 percentage point increase year-over-year.
The survey also found that the same number say their firm is in good form compared to 74 per cent a year ago.
Despite the harsh market environment many small businesses continue to encounter, over two-thirds (64 per cent) believe that business performance in the fourth quarter of 2023 will be better than the previous two years. Only 15 per cent of those polled thought things would worsen.
More than one-third believe that running a business has gotten more difficult in the last year. Inflation is a factor, the report stated, as more than half of respondents named growing costs of goods, services and energy as the most challenging barrier to running their business in the next six months.
These are fixed costs such as business rates, taxes (25 per cent) and labour (23 per cent). Almost six out of 10 (57 per cent) respondents say cash flow issues have impeded business growth plans, the report revealed.
Amanda Salt, Vice President, Small & Medium Enterprises, UK Card Services at American Express commented on the survey. She stated that while SMEs continue to face a challenging environment, the research shows real signs of positivity.
She said there’s an increase in business owners and leaders feeling confident about the future and plans to invest across several areas of their operations. Salt noted that their focus is on assisting these businesses and the entrepreneurs who operate them in driving development and success in the next few years.
Michelle Ovens, Director of Small Business Saturday UK said it has been another really tough year for small businesses, so it’s great to see the tide starting to turn and businesses regaining confidence. Ovens stated that behind the country’s 5.5 million small businesses are real people who have demonstrated incredible bravery, determination, and resilience in the face of all that has been hurled at them in recent years.
More than one-third of the SMEs admitted it is becoming increasingly difficult to run a small business and three-quarters believe there should be more acknowledgment of entrepreneurship. Reacting to this, Ovens stressed the need to help SMEs more than ever before and celebrated their incredible effect on local communities and the broader economy.
