Today, the Association of Practicing Accountants (APA) released a survey of 532 owner-managed businesses which revealed that 70% of these businesses do not consider growth to be their key priority for 2023. The research also found that 77% of businesses rate government support as poor, and 68% are unlikely to make a significant capital investment in the next 12 months.
The survey showed that 90% of businesses anticipate labour costs to increase over the next 12 months, while 89% expect supply-chain costs to rise. 53% of businesses also expect energy costs to impede their ability to deliver.
When asked what their main priority was, 23% of respondents said business growth, 59% said sustaining their business, and 11% said business survival.
Despite these concerns, the research found that many of the businesses remain resilient. 49% said they are in better shape than 12 months ago, and 78% were confident they could cope with further interest rate rises in the next 12 months. Additionally, only 39% felt recruitment and retention was likely to be a bigger challenge going forward than in the previous 12 months.
Commenting on the findings, APA Chairman Martin Muirhead said: “Owner-managed businesses are struggling with growth no longer the priority for a significant majority of SMEs. An uncertain economic outlook characterised by supply-chain inflationary pressures, wage increases, a tight labour market, and energy price volatility all present significant threats to this vital economic sector. There is real frustration among owner-managers at the lack of support from Government to help tackle these issues.”
The APA, a network of 20 leading business advisory firms, advises and supports over 14,000 businesses with turnover up to the hundreds of millions.
Owner-managed businesses are struggling to make growth the priority for 2023, according to a survey of 532 businesses released by the Association of Practicing Accountants (APA). The research found that 77% of businesses rate government support as poor, and 68% are unlikely to make a significant capital investment in the next 12 months.
90% anticipate labour costs will rise over the next 12 months, while 89% anticipate supply-chain costs to rise. 53% expect energy costs to impede their ability to deliver. The survey also showed that while 23% of respondents said business growth was their main priority, 59% said sustaining their business was the priority, and 11% said business survival.
Despite these concerns, the research found that many of these businesses remain resilient. 49% think they are in better shape than 12 months ago, 78% were confident they could cope with further interest rate rises in the next 12 months, and only 39% felt recruitment and retention was likely to be a bigger challenge going forward than in the previous 12 months.
Commenting on the findings, APA Chairman Martin Muirhead said: “An uncertain economic outlook characterised by supply chain inflationary pressures, wage increases, a tight labour market, and energy price volatility all present significant threats to this vital economic sector. There is real frustration among owner-managers at the lack of support from Government to help tackle these issues.”
The APA, a network of 20 leading business advisory firms, advises and supports over 14,000 businesses with turnover up to the hundreds of millions.
A survey of 532 owner-managed businesses has revealed that growth is not a priority for 70% of businesses in 2023. The research, conducted by the Association of Practicing Accountants (APA), also found that 77% of businesses rate government support as poor, and 68% are unlikely to make a significant capital investment in the next 12 months.
90% anticipate labour costs will rise over the next 12 months, while 89% anticipate supply-chain costs to rise. 53% expect energy costs to impede their ability to deliver. 59% of respondents said sustaining their business was the priority, and 11% said business survival.
Despite these concerns, the research found that many of these businesses remain resilient. 49% think they are in better shape than 12 months ago, 78% were confident they could cope with further interest rate rises in the next 12 months, and only 39% felt recruitment and retention was likely to be a bigger challenge going forward than in the previous 12 months.
Commenting on the findings, APA Chairman Martin Muirhead said: “An uncertain economic outlook characterised by supply chain inflationary pressures, wage increases, a tight labour market, and energy price volatility all present significant threats to this vital economic sector. There is real frustration among owner-managers at the lack of support from Government to help tackle these issues.”
The APA, a network of 20 leading business advisory firms, advises and supports over 14,000 businesses with turnover up to the hundreds of millions.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.