Experts Warn of ‘critical’ Situation for Small Businesses, as Recession Hits Britain
According to a new survey by the British Chamber of Commerce, Brits are reining in spending to withstand the impact of multi-decade high inflation on their budgets, resulting in one in four of the more than 5,600 businesses surveyed registering a fall in Sales in November.
The BCC warned its quarterly survey has settled at “concerningly low levels,” indicating the well-warned UK recession has set in, and the country is on course for at least a year-long slump, driven by rising prices and business costs.
The BCC also found that nearly two thirds of companies expect to lift their prices this year to protect margins squeezed by higher costs, suggesting inflation still has some staying power in 2023.
Khalid Talukder, Co-founder and Managing Partner for DKK Partners, comments:
“During difficult economic hardship, SMEs are far worse impacted than larger or mid-sized enterprises and businesses. This was certainly the case following the 2008 financial crisis and during the Covid-19 pandemic, and now, with the cost of living crisis, rising inflation and surging interest rates, there is no doubt that many small businesses are already withstanding the burden of the recession.
“SMEs play a crucial role in bolstering the economy and empowering innovation, which is why it’s imperative that they are not neglected during this turbulent period. Connecting them with seamless access to tier one banking services, such as cost effective fiat remittance and FX, will be crucial to ensuring they have access to the support and resources required to keep their head above the parapet, and even thrive, during this challenging period in the UK.”
David Bharier, head of research at the BCC, said:
“The situation remains critical for the majority of SMEs who find themselves cut adrift by monumental inflationary pressures, often driving triple-digit percentage cost increases, particularly on energy.”
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