Struggling to Thrive: Three-Quarters of Small Businesses Merely Surviving

A recent survey of 1,000 small business owners in the UK has revealed a concerning picture for the sector. An overwhelming 75% of these businesses are finding it challenging to survive, let alone thrive. Let's dig into the key findings and what they mean for small businesses across the country.
17 November 2023 | Digital Business

A recent survey of 1,000 small business owners in the UK has revealed a concerning picture for the sector. An overwhelming 75% of these businesses are finding it challenging to survive, let alone thrive. Let’s dig into the key findings and what they mean for small businesses across the country.

Key Findings

Why Are Small Businesses Struggling?

The survey unearthed several key reasons why a significant portion of small businesses are grappling with survival:

  • Cash flow problems (64%)
  • Competition from larger businesses (44%)
  • Red tape and bureaucracy (43%)
  • Access to funding (42%)
  • Skills and talent shortages (39%)

It’s clear that financial and competitive pressures, combined with administrative burdens, are major barriers to growth and success.

Long Hours and Hard Work

The survey also shed light on the demanding nature of running a small business. A vast majority of owners are putting in extra hours to keep their operations afloat:

  • 60% work over 40 hours a week
  • 20% work over 60 hours a week

This relentless commitment further highlights the struggles small business owners face on a daily basis.

Regional Variations

The survey identified striking regional differences in how small businesses are faring:

  • Businesses in the North East of England are most likely to be struggling, with 83% facing difficulties.
  • Conversely, businesses in London show the highest percentage of those thriving, at 31%.
  • In the South West of England, cash flow problems are particularly acute, affecting 71% of businesses.

This regional disparity underscores the importance of tailored support and interventions to address unique local challenges.

Industry-Specific Challenges

The survey also delved into the specific hurdles faced by various industries:

  • Retail businesses are particularly challenged by competition from online retailers, with 54% citing this as a key issue.
  • Hospitality businesses are experiencing significant staff shortages, a struggle for 51% of respondents in this sector.
  • Manufacturing businesses are contending with supply chain disruptions, an issue for 46% of those surveyed.

Each sector faces its own set of obstacles, necessitating industry-specific strategies and solutions.

Impact on Mental Health

The pressures of running a small business are taking a toll not just on operations but on the mental well-being of owners:

  • 55% of respondents reported feelings of anxiety.
  • 46% reported feelings of depression.
  • 45% reported feelings of burnout.

The mental health challenges faced by small business owners highlight the need for holistic support that addresses both business and personal well-being.

Support Needed

The call for support is loud and clear from small business owners:

  • 60% are looking for more government support.
  • 55% are seeking better access to funding.
  • 46% want more guidance on regulations and compliance.

The survey underscores the urgent need for comprehensive support to help small businesses not just survive but thrive. This includes financial aid, regulatory guidance, and mental health resources.

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