New Nucleus Commercial Finance research highlights the scale of the challenge facing UK SMEs
- 65% of SMEs are finding the current cost-of-living crisis is proving more of a burden on their business than the pandemic lockdowns
- Just 33% believe the cost-of-living crisis is proving less of a burden than the pandemic lockdowns
- An average of £34,433 has been borrowed or raised to support the impact the current energy/inflationary crisis has had on the finances of their business by SMEs.
- This rises to an average of £49,613 among small/medium sized businesses (companies with 10- 249 headcount)
- Almost two thirds (64%) of small/ medium sized business have had to borrow or raise any money as a result of the current energy/ inflationary crisis
When asked what single measure would provide the greatest boost to their business at the present time – the top 5 options among small and medium sized businesses were:
- Re-joining the European Union (19%)
- Having more tax incentives for innovation/ investment (18%)
- Improving internal IT/ tech capacity and capability (11%)
- Having more time to concentrate on innovation and growth (9%)
- Having greater childcare support from the government (9%)
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Chirag Shah, CEO and Founder of Nucleus Commercial Finance commented: “The scale of the current economic challenge facing UK SMEs vastly exceeds that of the pandemic according to those at the coalface. This is forcing businesses across the UK to reassess their investment and growth strategies, closely examine their overheads, and, more often than not, lean on additional finance just to keep the lights on. In fact, the average amount that small and medium sized businesses have had to borrow money as a result of the current energy and inflationary crisis is now a staggering £50,000. As the crisis continues, the situation is becoming increasingly perilous and UK SMEs need help, badly.
“While some investment commitments were set out in the recent Budget in a bid to kickstart the economy – there is no silver bullet. Crucially, what cannot be allowed to happen is stagnation. Failing to properly support SMEs in the short-term will wreak havoc on the long-term prospects for the UK as a whole.”
BY CHARLOTTE WELTON
Source: Columnist 24