Clarity Consulting

25% of small businesses expect to go bust by 2024

New research has revealed that a quarter of small business owners in the UK believe their company will fold in the next four years.

Cloud accounting software provider Xero polled 500 owner-managers and found that late payments (54%), tax rates (44%) and cyber-attacks (27%) were their biggest concerns.

Other challenges included Brexit (44%), maintaining or boosting levels of productivity (31%) and recruitment costs (19%).

More than a third (37%) of small business owners said they are experiencing their most turbulent period.

The pressures of running a small business in the current climate also affected more than a third of respondents’ mental health and their work-life balance; those surveyed reported working an extra nine hours a week on top of their regular working hours.

And, on average, they had to pump £11,846 of their own money into the business.

Gary Turner, Xero co-founder, said:

“The ways small businesses work now are dramatically different from the 1980s when the first personal computers arrived, but businesses need to adapt to greater changes coming their way.

“New technologies will hasten a far greater consciousness towards the biggest killer of small businesses.

“Cashflow issues will decline as instant payment technologies take root as a cultural norm. I believe what we’ll see are 30-day payment terms going the way of the fax machine.”

We can help

We can provide practical cash-flow management and credit control advice and services to help you keep your business on track. Give us a call today on 01483 205850 to find out more.

 

 

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