Concern over business retention has grown for small business owners since last year according to a survey by Hitachi, with Q3 recording a 11% increase on the same period in Q4 2014 (35% vs. 24%).
The latest research, taken from 1000 small businesses from Hitachi Capital’s quarterly British business barometer found retentionmore prominent than other potential ‘worries’ for businesses, such as managing cash flow (30%), dealing with red tape (27%) and navigating economic volatility (23%).
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Hitachi said that despite commitment by the UK government to save businesses £10bn (13.48bn) in red tape to boost productivity and keep the economy growing, the research suggests that this has not alleviated the worry for SMEs, and it has actually increased significantly from last quarter (27% in Q3 2015 vs. 15% in Q2 2015, an increase of 12%).
Managing cash flow is the biggest concern for manufacturing sector (45%), and has been the same for the last twelve months. This is followed by business retention (43%), both up significantly on last quarter (18% in Q3 vs. 26% in Q2 2015). Red tape and regulation is also up significantly on Q2 2015 (37% Q3 vs. 27% in Q2 2015). This sector is also keeping an eye on the economic outlook (33% Q3 2015 vs. 22% in Q2 2015).
The issues keeping SMEs in the construction sector awake have changed significantly in the last six months. Whereas last quarter, managing cash flow was the biggest concern in Q2 2015 (27%), this has dropped to 21% this quarter. The biggest concern is now around red tape (29%) and compliance issues (27%).
Gavin Wraith-Carter, general manager at Hitachi Capital Business Finance, said: "Running a business, regardless of size or sector is a constant challenge and business retention is certainly going to be at the front of peoples’ minds.
"There are a plethora of business related issues that SMEs have to juggle on a daily basis, including managing cash flow and having a some foresight on the issues such as the economy, both in the UK and abroad. By anticipating these issues, we can work with our introducers to offer solutions that can help people navigate the challenges of being a business owner and, hopefully taking some of the ‘worry’ away".
