FreeAgent Launches Report on State of UK Small Businesses

FreeAgent, who provide cloud accounting software to small business owners, freelancers and their accountants, has today released a report on the state of UK small businesses.

FreeAgent surveyed over 1,000 small business owners for their views on the current issues facing UK small businesses. The report, titled Time for Change: Why the UK needs to back small businesses, revealed that clearer guidance post-Brexit, access to finance, societal support and dealing with critical issues such as late payments once and for all are some of the most pressing issues which require action, and fast.

Key findings include:

The Brexit Conundrum

• 61% of small business owners think Brexit will have a negative impact on the economy
• A third of respondents said that the biggest obstacle to trading internationally was the lack of knowledge about new markets

The Late Payment Problem

• More than half (57%) of respondents said that they have been forced to write money off from their accounts at some point due to not being paid on time
• 55% of small business owners think that late payment should be treated as seriously as corporate crimes

The New Startup Economy

• Only 1% of respondents said they had officially used an official grant or government assistance to fund their business when they started
• Almost a quarter (23%)  of respondents started their business with less than £250

Supporting Small Businesses in the Current Climate

• Just over half (51%) of business owners revealed that they had suffered from burnout as a result of working too hard on their business
• The vast majority (80%) of respondents do not think that the UK education system provides young people with relevant skills required to start their own business

“New technology and legislation are having a significant impact on millions of small business owners, while ongoing economic uncertainty, the threat of automation and the looming shadow of Brexit are making the future increasingly unclear, ” commented Ed Molyneux, CEO and Founder of FreeAgent.

“In this challenging climate, we wanted to find out exactly what small business owners think about the current economic climate and the legal issues facing them. We asked more than 1,000 small business owners for their views on some of the big issues they currently face. Their responses show the clear need for a change of strategy in the small business sector in order to help these businesses survive and thrive.”

To view the full survey results, visit – https://www.freeagent.com/time-for-change/