Research by lender iwoca has unearthed some concerns for business in 2022
WITH rising inflation predicted by the Bank of England and the threat of rising interest rates, nearly 71 percent of small business owners cited inflation as their biggest concern going into 2022.
As energy, fuel and raw material prices rise, almost half (46 percent) named increased running costs as a concern. And with the dual impact of Brexit and the pandemic disrupting global trade routes, a quarter of small business owners also expressed concern about supply chains.
The threat of further restrictions remains a worry for small businesses, with 66 percent of small business owners citing additional Covid-19 measures as a key concern.
As concerns mount over the future of the economy and its effect on their business, four in five business owners do not expect to hire new employees this year, with only one in ten expecting to take on new staff.
Optimism among small business owners remains low, with 30 percent expecting to be worse off by the end of the year. Only 28 percent expect 2022 turnover to grow.
Harp Gill, the Milton Keynes-based owner of mobile catering business The Rub, said Covid restrictions had led to a string of cancellations. “While no new restrictions are imminent, we have been hit by short-term worries surrounding inflation and rising business costs,” he said.
“Over the past few months, supply chain issues and rising costs have meant we have had to remove certain meats from our menus, including beef and lamb. We hope that as people see the back of the pandemic and get out to celebrate their lives, we will return to normality.”
Seema Desai, iwoca’s COO, said the results showed that small business owners are concerned about knock-on effects.
Top three concerns business owners have about 2022
|Increased business running costs||46 percent|
|Supply chain issues||25 percent|
|Staff illness||24 percent|
Top three concerns business owners have about the economy in 2022
|COVID-19 restrictions returning||66 percent|
|Political uncertainty||43 percent|