Budget Cut Putting SMEs at Risk: Exeter Opts for Sustainabile Options

While about 61% of small business owners in the UK think their businesses will see measurable growth this year, a recent Small Business Britain report shows many are hitting the pause button in core investment sites like the marketing and tech divisions— certainly a cause for concern.

As the UK nearly misses a recession, the report reveals the dry seasonal trading to be denting the confidence of many businesses and putting them to a halt.

Thus, often you’ll hear UK fintech analysts advise consulting a debt collection agency UK— B2B company services,like Intrum — that would secure any previous debt and ensure cash flow for your small business, saving the time and effort that you’d otherwise have had to spend by yourself.

Renowned consultancy firm Dun and Bradstreet’s findings show the horror of how small and medium-sized enterprises (SMEs) in the UK are owed an average of £150,000 in late payments.

Avoiding such constraints could, thus, help the 5.5 million small businesses in the country survive the economic turmoil of the coming years.

Michelle Ovens CBE, the founder of Small Business Britain, however, believes that there's an opportunity for small businesses to make a comeback by turning them into the driving force behind growth, job creation, and innovation in the UK—which is urgent in such times of recession.

Holiday Rush and Delayed Investment Pulling Back Small Businesses

The report mentioned how many small businesses in the UK struggled during the holiday season, causing concern for the future.

36% of businesses reported that the season was not as good as usual but managed to make it through, while 10% had a poor season that left them worried. Another 7% found Christmas trading to be a major issue.

The dry seasonal trading period has had a significant impact on business confidence, with almost 40% of businesses anticipating either no growth or a decline in 2023. In response to these challenges, a significant number of businesses have delayed expansion (17%) and hiring (13%).

Moreover, in terms of investment in core areas such as marketing and digital skills, 31% of businesses have delayed their marketing spend, while 27% have cut it to manage cash flow.

Furthermore, over half (54%) of small businesses showed no interest in investing in digital skills, and new technologies, for themselves or their employees, which is concerning given the increasing shift towards a digital economy and the ever changing consumer demands.

Ovens Calls Out for a Positive Outlook and Effective Measures

According to Michelle Ovens, cutting back on activities that contribute to revenue and growth, such as marketing and digital efforts, while understandable for cost reduction, is surely counterproductive.

Additionally, she called for increased support and advice to help businesses manage costs through sustainable savings and efficient supply chain evaluation and negotiation.

In the midst of these, Sheena Roberts, the founder of Green Man Quilts and a small business owner, shows optimism about the prospects for 2023.

Roberts acknowledged that the recent season had been disappointing, resulting in the discontinuation of one of her classes. However, she seemed enthusiastic about upcoming developments regarding low-cost and cost-free marketing strategies.

The report also advises small businesses to explore innovative means of cost management and seek new opportunities, with a focus on sustainability as a growing area with focus across crucial domains such as budget marketing, confidence building, and resilience building.

Exeter Business Community Going Green with Sustainable Practices

Meanwhile, staying true to the findings of the report, many businesses in Exeter are opting for sustainable business practices that are becoming a sign of optimism.

According to a Future of Transport survey conducted by the Exeter Chamber of Commerce with more than 300 responses, over 70% strongly agreed that traveling more sustainably is important to help the region reach its net zero carbon targets.

Also, the Revolution Bar in Exeter has committed to cutting down on energy consumption by setting down to close on Mondays and Tuesdays, hoping this would also help the chain financially after the lack of customers that followed the busy festival season.

This certainly brings hope for a better future where such sustainable business practices must be encouraged to ensure the survival of our species.