In the ever-evolving landscape of small and medium-sized enterprises (SMEs) in the UK, recent research by Shawbrook has identified political uncertainty as a major worry for business owners. This shift in priorities from the previous year underscores the significant impact of political dynamics on the SME sector.
Key Findings:
- 51% of SMEs Apprehensive for Change of Government
- Political uncertainty cited as a top concern by over half of SME decision-makers
- Rising costs remain a major worry, with 73% of SME decision-makers expressing concerns
Apprehension Over Change of Government
In a staggering revelation, 51% of SMEs expressed apprehension over the potential change of government. Additionally, 50% of respondents cited political uncertainty as a major concern, indicating ongoing unease within the business community as the UK approaches a general election.
The survey highlights a concerning trend in rising costs, with 73% of respondents identifying this as a top issue. This represents an increase from 68% in the previous year, with 26% expressing deep concern about the cost of running their business. These findings reflect the mounting pressure faced by SMEs amidst economic volatility.
Read more: 3 Tips for SMEs to Win Government Contracts
Continuing Concerns
Looking ahead, the cost of living remains a pressing concern for 69% of business owners. Economic uncertainty continues to worry 66% of respondents, albeit a decrease from the previous year. Interest rates and supply chain disruptions are also top apprehensions for SMEs, with 67% and 57% expressing concern respectively.
Shawbrook’s research highlights the persistent challenges faced by SMEs, including bill costs and debt repayment worries.
Neil Rudge, head of enterprise at Shawbrook, commented:
“With the impending general election, SMEs are understandably cautious as new policies and regulations may impact their business plans. The dissemination of clear information by political parties is crucial to help businesses prepare for potential changes.”
“Despite these challenges, there is optimism among SMEs, reflected in increased funding applications. This, coupled with falling inflation and anticipated interest rate reductions, suggests a promising second half of the year for the economy.”
