Fleximize’s Outlook Report analyses responses from 273 UK business owners with a turnover of £120k+ per annum and over three years trading time. They set out to understand the key obstacles businesses are likely to face over the next 12 months, their optimism levels, and what support they need to successfully navigate the inevitable headwinds.
Almost 90% of business owners remain optimistic for 2023, despite concerns around energy prices, supply costs, and the need to raise prices.
Fleximize’s Outlook Report analyses responses from 273 UK business owners with a turnover of £120k+ per annum and over three years trading time. They set out to understand the key obstacles businesses are likely to face over the next 12 months, their optimism levels, and what support they need to successfully navigate the inevitable headwinds.
Fleximize is a multi-award-winning digital business lender dedicated to providing UK SMEs with flexible finance. In addition to funding the underserved, they are on a mission to drive transparency and demystify commercial finance. They worked with independent specialists, Censuswide Surveys, to collate survey answers from the 20 and 26 October 2022.
With SMEs accounting for 99.9% of the business population, it should be no surprise that their survival is integral to economic productivity and prosperity.
The survey states that 54% of respondents expressed their main concern being energy price hikes. This was closely followed by supply costs (37%). As a result of Brexit, business owners are likely to need assistance navigating the new trading environment due to increased red tape.
43% of businesses will be renegotiating with suppliers and 42% will be making cuts to technology.
92% of SMEs surveyed reported they would pass on costs to their customers, with 1-10% being the most likely increment. In this case, the fear is that demand will be negatively affected if their products aren’t considered essential.
90% of SMEs stated they will need support to withstand the recession. The top category believes that knowing what support is available to them would help. Making it clear that increased SME support is vital.
On a more positive note, 88% of business owners remain optimistic about the future of their businesses.
Overall, the report highlights clear areas where businesses require a helping hand to withstand the recession, such as:
• Managing finances
• Awareness of available funding (to support cash flow)
• Overcoming the skills shortage and productivity levels
• Signposting of mental health support available to SMEs
Support from private and public organisations needs to be made available and publicised. There is also a need to have open and honest conversations about their financial needs.
Peter Tuvey, Chief Executive Officer at Fleximize, said:
“There is still an unhealthy stigma around borrowing, deterring businesses from educating themselves about finance. Borrowing does not necessarily mean a company is in hardship, but rather it shows it’s progressive, ambitious, and likely thriving.
“Financial resilience is about managing finances, it isn’t a result of not borrowing – the most optimistic businesses predict that they will need to borrow in the next 12 months.”
Despite the tough year ahead, SME outlook is positive as they have already proven flexible, resourceful, and adaptable during the pandemic.
