The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
The past few years have raised difficult circumstances for business owners, from the pandemic to the current cost of living crisis, businesses find themselves in a place of financial instability as a result.
Therefore, Moneypenny surveyed 500 business owners and senior decision-makers to gauge their confidence in their business’s future. They also surveyed 1000 members of the British public to measure the appetite for starting a business.
Revealed: 30% of aspiring business owners are put off by the cost of launching a business
Moneypenny has completed two separate surveys, one to gauge the confidence amongst business owners and senior decision-makers in their business and the other to explore the number of people considering launching their own company.
Firstly, business owners were asked what factors had recently caused them to worry about the future of their business. The top three factors were:
The Covid-19 pandemic: 56%
The cost of living crisis: 52%
The fuel crisis: 39%
Demographically, 72% of those worried about the cost of living crisis were female, other factors worrying business owners included the increase in energy costs (30%) and a decline in consumer spending (25%).
The survey also revealed the ways businesses are adapting to the financial crisis, 53% have already increased their prices whilst 31% stated they have left or sold their physical office, moving completely remote to avoid renting costs.
Regionally, 66% of Londoners have increased prices and half of those surveyed in the North East have resorted to taking out a business loan to cover the increase in costs.
When quizzed on their confidence in their business’s future, a total of 82% answered that they were confident, 32% were very confident and 50% were somewhat confident.
Sadly, the survey also revealed that 3% were not optimistic about their business’s future with 2% expressing they don’t believe their business will survive the next three years.