Top Service News
SME business confidence falling
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A survey by the Association of Chartered Certified Accountants (ACCA) and the Corporate Finance Network reveals confidence among SMEs has fallen from 38% in the summer last year to 17% now.
The number of SMEs who have plans for growth has plummeted from 38% in the summer of last year to just 17%. The research brings to the forefront the underlying pessimism among SMEs as a third (33%) of businesses felt less confident in their ability to grow following the Chancellor’s statement back in November.
The survey also found that 78% believe the government should prioritise small and medium businesses when identifying business sectors to direct future support. With a further 12% noting that micro businesses mustn’t be overlooked.
The ongoing stress of significant economic strain is taking its toll on the mental health of SME owners with an alarming 63% reporting higher levels of stress and anxiety. This has almost doubled over a six month period (33% in June 2022).’
ACCA UK and The CFN warn that as economic uncertainty continues, more detailed and targeted support from the government is needed to help firms’ growth worries and their mental health.
Glenn Collins, Head of Technical and Strategic Engagement at ACCA UK said “If the government wants to achieve their ambitions for economic growth, then it needs to take action and put in place a robust plan to address business pessimism. With an uninspiring Autumn 2022 Statement and subsequent cutting back of measures such as the energy support bill, SMEs are struggling and mental health is plummeting as a result. Businesses are in dire need of clarity for 2023 as they remain at a loss, unable to efficiently plan and organise their finances. This must be addressed in the Spring Budget.”
Commenting on the construction sector, Emma Reilly, Credit Management Specialist & MD at Top Service Ltd said “Construction output is still relatively strong and the government is still providing some help to SME developers, however, confidence in terms of getting paid on time is waning amongst SME construction businesses with many worried about the potential cash-flow challenges that lie ahead”.