SMEs buckle under increasing pressures

A large number of British SMEs are buckling under increasing regulatory and compliance pressures, when they could be seeking specialist advice to stay afloat.

A survey conducted by business property website Bizdaq has revealed that some 370,000 small business owners in Britain are planning to close their doors within the next five years due to what The Telegraph dubbed as a ‘toxic cocktail of threats’.

The results could be devastating for the British economy.

Burdensome bureaucracy, increasing red tape and ongoing compliance pressures all ranked high amongst SMEs’ reasons for closure, according to Bizdaq’s report – despite the fact that all pose financial difficulties which can be significantly reduced with the right specialist advice.

Two in five of those surveyed said that their business faced more risk now than it did ten years ago.

A separate report from insurance giant Zurich said that business risk had been at its highest level since 2014.

Zurich’s study said that a tough trading environment in the UK had forced approximately 20 per cent of small firms to reduce their prices in the last financial quarter.

It added that more than one in eight had had to reduce wages and cut staff.

Zurich’s Anne Griffith’s said: “There continue to be a number of economic roadblocks and operational challenges to be overcome,

“They [businesses] will need all the support available for them to ride out the current uncertainty.”

Mike Cherry, national chairman at the Federation of Small Businesses (FSB), said: “Small firms are dealing with a series of challenges including adjusting to the new National Living Wage and auto-enrolment on pensions”.

Fearful SMEs and struggling businesses are urged to seek specialist advice to ensure a secure and profitable future amidst the increasing pressures.