Sleepless nights for small business

SMALL business owners are suffering from ‘sleepless nights’ as nine in 10 say profits are being hit by soaring material and energy costs.

Businesses said inflation is their biggest challenge, followed by Covid’s after-effects plus staff recruitment and retention.

Inflation hits small businesses hard as they are less able to pass on cost rises.

A survey by accountancy firm Moore UK found that 93pc of small businesses are under ‘acute pressure’ because of the cost increases. Moore UK chairman Maureen Penfold said spiralling costs are getting ‘out of control’. She said: ‘A lot of small business owners are having sleepless nights over how they handle the shock of cost increases.’

The survey also found that more than half of small and medium-sized businesses are struggling to recruit staff.

A separate survey by accountancy firm BDO found more than half of businesses view supply chain disruption, energy costs or inflation as their biggest challenge.