A new study has revealed that almost one million small companies in the UK are running their businesses with £1,000 or less set aside in the bank to help them through any decline in their revenue, Director of Finance reports.
The Yell.com study canvassed the opinions of 500 bosses in the wake of the pandemic period and the ongoing cost of living crisis.
Nearly half of the respondents reportedly said they can save significantly less now than they could three years ago. Making it no surprise that savings levels are so low. Based on the 5.5 million classed as SMEs who are currently trading within the UK, the 17 per cent that admits to having £1,000 or less saved, amounts to £935,214.
Experts suggest that businesses should have three to six months of operating costs saved. Yell.com said the survey’s findings paint a particularly worrying picture, especially as the research also found that one in 10 with up to 49 employees have no savings whatsoever, putting the jobs of millions at risk.
The ongoing cost of living crisis is reportedly playing a large part in businesses’ inability to save. One in 10 say they can’t save anything each month and a further 9 per cent are only able to save up to £200 per month. For sole traders, the situation is even more worrying because one in three doesn’t currently save anything to help keep their business afloat each month.
Inflated costs and low savings are sure to impact the confidence of those at the top and Yell’s study goes on to show that 2023 could be a difficult year for many. One in 10 – amounting to 550,126 UK businesses – are not confident that they will still be buoyant in six months’ time, a number that rises again when looking further ahead to 2024.
This lack of confidence is reportedly more common in some parts of the country than others. A greater number of business leaders in London are feeling the increasing pressure from what is an already expensive location to run a business and worrying whether they will still be around in 2024.
Mark Clisby - Yell CEO - said, ‘’There is currently a lot of discussion around personal savings, and this feedback from UK SMEs is a good reminder of the importance of regularly reviewing where to invest and where to make savings.
“Quite often, a common reaction can be to cease marketing activity, but time and again we see this as a counterproductive option. Marketing is required to bring in new customers and keep revenue coming in and your competitors may be increasing their media investment, so will be more prominent.”
Source: Director of Finance
(Quotes via original reporting)
A new study has revealed that almost one million small companies in the UK are running their businesses with £1,000 or less set aside in the bank to help them through any decline in their revenue, Director of Finance reports.
The Yell.com study canvassed the opinions of 500 bosses in the wake of the pandemic period and the ongoing cost of living crisis.
Nearly half of the respondents reportedly said they can save significantly less now than they could three years ago. Making it no surprise that savings levels are so low. Based on the 5.5 million classed as SMEs who are currently trading within the UK, the 17 per cent that admits to having £1,000 or less saved, amounts to £935,214.
Experts suggest that businesses should have three to six months of operating costs saved. Yell.com said the survey’s findings paint a particularly worrying picture, especially as the research also found that one in 10 with up to 49 employees have no savings whatsoever, putting the jobs of millions at risk.
The ongoing cost of living crisis is reportedly playing a large part in businesses’ inability to save. One in 10 say they can’t save anything each month and a further 9 per cent are only able to save up to £200 per month. For sole traders, the situation is even more worrying because one in three doesn’t currently save anything to help keep their business afloat each month.
Inflated costs and low savings are sure to impact the confidence of those at the top and Yell’s study goes on to show that 2023 could be a difficult year for many. One in 10 – amounting to 550,126 UK businesses – are not confident that they will still be buoyant in six months’ time, a number that rises again when looking further ahead to 2024.
This lack of confidence is reportedly more common in some parts of the country than others. A greater number of business leaders in London are feeling the increasing pressure from what is an already expensive location to run a business and worrying whether they will still be around in 2024.
Mark Clisby - Yell CEO - said, ‘’There is currently a lot of discussion around personal savings, and this feedback from UK SMEs is a good reminder of the importance of regularly reviewing where to invest and where to make savings.
“Quite often, a common reaction can be to cease marketing activity, but time and again we see this as a counterproductive option. Marketing is required to bring in new customers and keep revenue coming in and your competitors may be increasing their media investment, so will be more prominent.”
Source: Director of Finance
(Quotes via original reporting)