Since the UK decided to leave the European Union, concerns have been flagged to businesses within the UK about their costs which seem to be rising since the exit was announced. This has caused some businesses to panic with uncertainty about their financial planning for the new year.
Over half, (58%) of the SMEs within the UK are making their New Year priority cutting down their costs according to a study carried out by Liberis. Businesses are putting this ahead of the growth of their company and encouraging their employee’s skills set.
The survey also found that due to Donald Trump’s presidency, Brexit and rising costs these are all barriers firms are set to face during 2017, which may be the reason they are set on cost cutting.
Which sectors are serious about reducing costs?
Out of the 58% determined to cut costs, 21% come from the retail sector who are putting this before anything else and flagging it as their biggest threat of 2017. In contrast to this, most of those working within the automotive industry claimed to be prioritising the development of staff skills.
When looking at the size of the business, companies with 1-49 employees will focus their attention on shrinking costs in the New Year and businesses with 50+ are dedicated to see their employee’s skill sets grow.
61% of businesses who fear the aftermath of Brexit, are respondents of an age of 45, and 81% are male gender. As well as Trump and Brexit, UK businesses with 1-10 employees also fear their competition, calling it their biggest threat of 2017.
When thinking about their New Year’s resolutions, unlike the average person who will cut down on those treats they love so much or claiming they will become a gym addict, 28% of SMEs are choosing ‘to gain a better work-life balance.’ These business owners fall between the ages of 25 and 34 and 25% lay within the hospitality sector.