Inflation worry for bosses
SMALL business owners have a number of financial concerns going into 2022, according to analysis by one of Europe’s largest small business lenders.
Iwoca found that with rising inflation predicted by the Bank of England, and the threat of rising interest rates this year, nearly three quarters of small business owners cited inflation as their biggest concern for 2022 regarding the economy.
As energy, fuel and raw material prices rise, almost half of small business owners surveyed named increased running costs as a main concern.
With the dual impact of Brexit and the pandemic disrupting global trade routes in the past year, a quarter of small business owners also expressed concern about how supply chain issues might affect their business.
The threat of further Covid restrictions remains a worry for small businesses, given the tough trading conditions, with 66% of small business owners citing additional measures as a key concern going into the new year.
Small business owners’ attitudes to hiring as concerns mount over the future of the economy and its effect on their business, with four in five saying that they do not expect to hire new employees this year, with only one in ten predicting they will hire over the next 12 months, despite record vacancies across the economy.
Optimism among small business owners remains low, with almost a third predicting that they will be worse off by the end of 2022. Alongside this low optimism, only 28% of small businesses expect 2022 turnover to grow this year, and one in five expect turnover to shrink.
Seema Desai, iwoca’s chief operating officer, said: “These results show that small business owners are concerned about rising inflation and the subsequent knock-on effect this will bring. Access to finance can help small business owners to make the most of growth opportunities, and that’s why it’s important that lenders like iwoca continue to support small businesses so they can fulfill their full potential.”