Small to medium-sized businesses within Britain are finding it hard to keep their business afloat. Due to this, business owners are having to contribute their personal savings so they can continue to trade.
Approximately one in five SMEs are giving up their payday to avoid shutting up shop according to a survey conducted by the business leg of Npower which was sent to 1000 SMEs. Fighting against a current aggressive economy, small businesses have revealed that they are self-reliant when it comes to financing their business – in fact 60% of those surveyed admitted they do not rely on anyone financially. A further 20% also disclosed that they are using their own personal savings to keep the business sailing.
Richard Longbottom, head of sales and marketing at Npower Business comments;
“SMEs are super powering towns and cities across Britain, helping to determine the success and character of regions across the UK. However, it’s clear from our research that some of these businesses are relying entirely on themselves to succeed.”
Doubt continues to lurk around SMEs and their lack of faith regarding improvement also remains low with Brexit officially declared. The survey was compared with 2016’s and it found that already this year a quarter of those who took part have little confidence about their businesses growth in 2017 and 67% believe this effect has fallen from the decision to leave the European Union.
On a brighter note for SMEs, the Federation of Small Businesses (FSB) have uncovered that their plans of a trade deal with Europe is sitting at the top of their priorities list. Research also found that one of the concerns businesses have are the tariffs that are approaching now that we have left the EU. Some SMEs have revealed they would be hesitant to trade with the EU if tariffs hit between 2% and 4%.
FSB national chair, Mike Cherry said;
“The reality is that the EU single market is still a crucial market for smaller firms and cannot be undervalued. Compared with larger companies, small businesses typically work to tighter margins with limited resources, meaning changes to the trading landscape will hit them disproportionately hard.
We call on the Government to ensure that a sensible phased implementation arrangement is out in place to avoid a cliff edge, once we have left the EU.”