It’s no secret that Rachel Reeves increased taxation on every job via employers NI has hit many small businesses hard. Then there’s the rise in business rates, the extra time and accountancy cost of making tax digital, fuel costs, energy bills and more. It’s brutal out there for anyone seeking to work for themselves rather than rely on State handouts for their entire lives. For insurers it’s worth noting that when small biz is finally destroyed there will be a reduction in headcount across Commercial, Fleet, Cyber, BI lines etc.
Here’s the word from NFU Mutual;
More consumers are now concerned about the future of small businesses than they were 12 months ago – despite an increase in footfall within the same timeframe.
Research from commercial insurer NFU Mutual shows that more than three-quarters of UK consumers surveyed (77%) admitted they were concerned about the future of small businesses – a rise from 75% 12 months prior. That comes even though more people said they bought goods or services from a small or independent company than the previous year, according to the survey.
More than nine in 10 said they have made purchases or used the services of a small business, with the most common of those being cafes (52%), restaurants (48%), grocery stores (47%), hairdresser/barbers (43%) and bakeries (40%).
It is clear those companies are still high in demand – and using them can come with a multitude of benefits. More than half of those surveyed said one such benefit would be supporting the local economy, while a third said small businesses give you better customer experience and a quarter of the UK highlighted the higher quality of goods you receive.
For many, however, cost comes in to play when deciding whether to use a small business. More than four in 10 of those surveyed said high pricing was one of the biggest barriers – an increase from those surveyed this time 12 months ago. The location and a lack of knowledge were other deterrents.
Of those most concerned about the future of the UK’s independent companies, 25 to 34-year-olds came out on top. More than eight in 10 of that age range – typically those launching a start-up or taking on a family-run enterprise – say they are worried for the years to come.
Zoe Knight, Head of Commercial at NFU Mutual, said: “Small and independent businesses are such a key part of our communities and really do offer a unique experience to the areas they serve.
“While our research does show that concern has risen for their future – which could be due to a number of reasons out of their control – what is still clear to see is the vast number of the UK still using them, and the positive reasons as to why they are.
“There have been plenty of challenges for start-ups and entrepreneurs in the current climate, but we would encourage shoppers to continue to support local businesses and make the most of the excellent service and products they offer.”
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