It has been recently revealed 26 per cent of small-business owners have already increased the prices of their goods and services as they look to manage rising costs. This is according to the research from finance provider iwoca.
The report further revealed that the biggest worry among 46 per cent of SME owners over the coming year has been the increased cost of running a business in the midst of continuing supply chain issues and staff and personal illness.
Rising energy bills. has been cited in the report as one of the leading factors in increasing costs, with 36 per cent of small-business owners seeing their energy bills increase in 2021. Because of this, 30 per cent of SME owners said they will have to reduce their energy usage to save on running costs. However, 17 per cent said that if they did so, it would negatively impact their business.
And while 50 per cent of respondents have reported being affected by rising inflation rates, the impact is greater among owners of limited companies compared to the sole traders (56 per cent compared to 46 per cent). Despite this, owners of limited companies are more confident (at 26 per cent) that they can manage the rising costs compared to sole traders (15 per cent).
Seema Desai, COO at iwoca commented on the research, saying, “Small-business owners around the UK face a double hit on energy bills – at home and for their business. Whilst households are protected by the energy price cap, businesses are left exposed to skyrocketing prices. Many small businesses cannot absorb the costs of higher bills, meaning customers will be hit by increased prices and business closures. It’s vital that lenders such as iwoca continue to support small businesses with flexible products that assist with cash flow and inspire confidence about their future.”
