Political uncertainty has emerged as the leading concern for small and medium-sized enterprises (SMEs) in the UK, according to a recent study by Shawbrook.
This apprehension comes as the nation gears up for a general election on 4 July 2024.
The study reveals that 51% of SMEs are uneasy about the potential ramifications of a new government taking office. This marks a notable shift in SME priorities, with half of the businesses surveyed expressing significant anxiety over the unpredictability of the political climate.
The findings underscore how political factors are increasingly influencing business sentiment and decision-making processes among UK SMEs.
Additional Findings from Shawbrook’s Survey
In addition to political uncertainty, UK SMEs report that rising operational costs have become a major hurdle, with 73% of those surveyed naming it their top concern, an increase from 68% last year.
The financial strain is evident, with 26% of business owners expressing intense concern about the expenses required to keep their operations running.
Although economic uncertainty remains a key issue for 66% of SMEs, this represents a slight improvement from 69% the previous year.
Additionally, interest rates and supply chain disruptions continue to be significant sources of stress, affecting 67% and 57% of businesses, respectively.
Moreover, the ongoing cost-of-living crisis is also a significant worry, with 69% of respondents anxious about the financial challenges in the year ahead.
Shawbrook’s research sheds light on the enduring problems of rising operational costs and debt repayment, which have consistently troubled SMEs over the past two years.
Their data highlights the critical need for better financial support and strategic planning to help small businesses manage these ongoing challenges, especially in light of the upcoming general election later this year.
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