Last Updated on: 22nd November 2023, 03:29 am
A survey of 532 owner managed businesses conducted by the Association of Practicing Accountants (APA) has revealed that growth is not the key priority for 70% of companies this year. Furthermore, 77% of respondents rated government support for their businesses as poor.
The research also found that 68% of owner managed businesses are unlikely to make significant capital investment in the next 12 months. In addition, 90% anticipate labour costs to rise, while 89% anticipate supply chain costs to increase. 53% also expect energy costs to impede their ability to deliver.
When asked what their main priority was, 23% of respondents noted business growth, 59% said sustaining their business and 11% noted business survival.
Despite these concerns, the survey found that many of these businesses remain resilient. 49% believe they are in better shape than 12 months ago, 78% are confident they could survive further interest rate rises in the next 12 months and only 39% felt recruitment and retention would be a bigger challenge in the next 12 months than in the past.
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 survey revealed that 70% of owner managed businesses are not prioritising growth in 2023, with 77% rating government support as poor. Furthermore, 68% are unlikely to make significant capital investments in the next 12 months and 53% expect energy costs to impede their ability to deliver. Despite these issues, the research found that many of these businesses remain resilient.
APA Chairman Martin Muirhead commented that “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.” He added that there is “real frustration among owner managers at the lack of support from Government to help tackle these issues.”
The Association of Practicing Accountants (APA) is a network of 20 leading business advisory firms. APA members collectively advise and support over 14,000 businesses with turnover up to hundreds of millions.
Today, the APA released the results of their survey of 532 owner managed businesses, revealing that growth is not the key priority for the majority of companies this year. The survey also found that these businesses remain resilient, despite the challenges they face.
