What is the solution for small businesses’ biggest worry?
As small businesses battle a growing number of issues, from cost inflation to wage rises, there is one issue that remains their biggest concern.
Some 78 per cent of small business owners said productivity concerns within their business or staff were their biggest worry, according to new research by Simply Asset Finance.
The survey of 796 small firms also found that 74 per cent were also worried about rising operational costs, while 70 per cent feared further supply chain issues.
However, as time can be a large barrier for many small business owners, investing in certain technology to optimise day-to-day productivity for both owners and workers could be a solution, some officials say.
Ylva Oertengren, chief operating officer of Simply Asset Finance, said there’s plenty of conversation on how small businesses can restructure their business so they can have a more productive business model moving forward.
However, she stated there could be two specific solutions to driving productivity within SMEs. Oertengren said: “One is naturally to add people to the business, however, there is this shortage and that doesn’t really work as it did maybe some time or some period ago.
“But the other side of it is for them to buy new machinery, more efficient production lines, and invest in technology that is meant to drive more output per hour.”
Co-founder of business services comparison site Beasy, Ala Uddin, says the findings of concerns come “as no surprise”.
He added: “As business owners ourselves who have worked with many small companies, we understand first-hand the strategies needed to optimise productivity.
“With small business owners already pressed for time, the fact that they currently spend over 5.5 hours a week managing basic business admin, all at a cost of over £7,000 per business, according to our own research, makes it clear that reliance on manual processes is hindering business progress and growth.”
Uddin says AI and cloud computing technologies should be a priority — with their help, small business owners have more time to focus on the important themes: “strategising, innovating and growing.”
Despite heightened concerns about productivity, Mike Randall, chief executive at Simply Asset Finance, said there is still “growth on the horizon” for many SMEs, despite the “unparalleled hardship” faced over the years.
On Monday, new data revealed that small business confidence was growing — although still remaining in negative territory.
According to the Federation of Small Businesses’ third-quarter Small Business Index, confidence was at -8 points in the three-month quarter ending in September — up from -14.2 in the previous quarter but still worse than the first quarter’s -2.8.