Category Archives: Business Research

Business, Business & Property News, Business Research, News

New Survey Reveals the Unacknowledged Issue Worrying Most Businesses

(London, United Kingdom), Wednesday 1st May 2024: Reputation management is one of the biggest issues concerning businesses, according to research released today. New statistics show that most businesses are more worried about reputational damage than a host of other serious issues.

The nationwide survey, commissioned by Speakers Corner, drew responses from 500 business owners and directors with at least 20% equity, for companies with at least 100 employees.

Surprisingly, more than half the business owners and directors surveyed say reputational damage worries them more[1] than other concerns including falling profits, high staff turnover, high inflation, the cost of living impact on their staff or rising energy costs. In addition, 50% say they are more concerned1 about reputational damage than the potential of a recession, the possibility of going back into lockdown or the green agenda including net zero targets.2

“The results of this survey are a clear indication that reputation management is a critical issue for most businesses – and it’s never been more challenging,” comments Nick Gold, Managing Director of Speakers Corner, the UK’s leading speaker bureau. “Alongside delivering value to shareholders and stakeholders, businesses are also expected to lead the way in corporate social responsibility and ethical practices, as well as having a positive impact on their communities. Any perceived wrongdoing or controversy can have serious repercussions, and this is obviously a huge concern for most businesses.”

Almost 9 in 10 (88%) business owners and directors surveyed said reputation management is more of a priority[2] for their business than training employees and 86% said it was more of a priority2 for them than sustainability.

 

The threat of reputational damage is coming from a variety of issues. 23% of directors/business owners surveyed see financial issues as the reputation issue most damaging to their business, while 16% cite toxic business culture/bullying as the most damaging reputation issue; 16% name data breach issues as the reputation issue that could be most harmful and 11% list environmental concerns as the issue likely to cause most damage to their reputation.

In today’s interconnected world a single negative incident or comment can spread rapidly, potentially causing significant harm to a reputation, making it an increasingly pressing issue for UK businesses.

The top five impacts experienced by the directors and owners surveyed in managing reputation issues are:

  1. Low staff morale (28%)
  2. Staff left (27%)
  3. Negatively impacted profits (26%)
  4. Negative impact on culture / weakened value proposition (24%)
  5. Investment withdrawn (22%)

 

The stress of reputation management may not be one of the topics making headlines – for example a potential recession or high energy costs are. But these survey results highlight how huge this worry is for the majority of business owners and directors.

Concern over protecting their business from reputational damage is one of the biggest issues most businesses currently face.

 

[1] ‘Reputational damage concerns me much more’ and ‘Reputational damage concerns me somewhat more’ answers combined.

2 See notes to editors for a further breakdown of data as illustrated in the infographic.

[2] ‘Reputation management is significantly more of a priority’ and ‘Reputation management is somewhat more of a priority’ answers combined.

Business & Property News, Business Advice, Business Research, News, Research

Unlocking your business potential with the power of Operational Research

Written By Seb Hargreaves, executive director of The OR Society

In today’s rapidly evolving business landscape, one hidden gem is Operational Research (OR) – an innovative solution that is driving competitiveness and relevance for businesses.

Often termed ‘the art and science of decision making,’ OR combines advanced mathematics, data analytics, and human insights to tackle intricate business challenges.

Originating from World War II, OR’s roots trace back to scientists and engineers innovating strategies that optimised military operations. Analysing data, mapping processes, simulating scenarios, and planning optimal routes became pivotal in minimising military losses and ensuring mission success.

Today, executives across a diverse range of organisations – large, small, public, private, or non-profit – are using OR to extract value from data, model intricate systems, and make better decisions with reduced risks.

OR’s Impact on Business Transformation

Imagine an OR specialist collaborating with a logistics company, optimising delivery routes considering variables like traffic, fuel costs, and delivery deadlines or  a retailer using OR to analyse sales data, precisely predicting stock needs while balancing customer demand and inventory expenses.

Consider Pilkington UK, a glass manufacturer, which employed OR to streamline manufacturing and reduce glass waste. By harnessing OR techniques to review order data, the company redefined its manufacturing processes to align with specific customer orders, minimising waste, cutting costs, and enhancing their customers’ satisfaction.

Another example is Tesco, the UK’s largest grocer, that has used OR solutions to meet the daily challenge of managing the expiring stock of both food and non-food items.  A key step in Tesco’s value chain is what happens at the end of a product’s lifecycle. This is the last opportunity to sell an item to a customer or donate it to the community to ensure it doesn’t go to waste.

Tesco, like most retailers, discounts items that are close to being removed from the shelves.  This process is applied across Tesco’s product range, from general merchandise and clothing to fresh food. In particular, food items are reduced in price as they get closer to expiry to sell them before they go to waste.

Finding an optimal reduction strategy is a major challenge for every retail business. The question that must be answered is: By how much should the price be reduced?

There are two conflicting objectives:  to not only increase revenue but also reduce waste. Finding a solution that achieves both is a non-trivial task, but it’s what Tesco’s Data Science Team managed to do using OR.

They developed a novel multi-stage Clearance Pricing Optimisation system and deployed it across all Tesco stores in the UK where it is applied to 100,000’s of unique products annually.

The key objectives are to: 1) clear excess stock by a specific date; 2) increase revenue by finding the optimal discounts, and 3) reduce operational costs and provide further insights of in-store processes.

The solution achieved these objectives and has been a great success. Tesco has reduced the number of fresh food items going to waste by 5% and its impact on the planet, whilst at the same time increased the revenue generated by 1.5-13% across multiple food and non-food product lines.

Tesco were also delighted to be awarded the OR Society’s President’s Medal in 2022 for this work.

Like these examples, almost any organisation can use OR to solve complex problems, make cost savings, and improve decision-making. For businesses yet to explore this powerful tool, discovering its potential could be a real game changer.

By Seb Hargreaves, executive director of The OR Society

In today’s rapidly evolving business landscape, one hidden gem is Operational Research (OR) – an innovative solution that is driving competitiveness and relevance for businesses.

Often termed ‘the art and science of decision making,’ OR combines advanced mathematics, data analytics, and human insights to tackle intricate business challenges.

Originating from World War II, OR’s roots trace back to scientists and engineers innovating strategies that optimised military operations. Analysing data, mapping processes, simulating scenarios, and planning optimal routes became pivotal in minimising military losses and ensuring mission success.

Today, executives across a diverse range of organisations – large, small, public, private, or non-profit – are using OR to extract value from data, model intricate systems, and make better decisions with reduced risks.

OR’s Impact on Business Transformation

Imagine an OR specialist collaborating with a logistics company, optimising delivery routes considering variables like traffic, fuel costs, and delivery deadlines or  a retailer using OR to analyse sales data, precisely predicting stock needs while balancing customer demand and inventory expenses.

Consider Pilkington UK, a glass manufacturer, which employed OR to streamline manufacturing and reduce glass waste. By harnessing OR techniques to review order data, the company redefined its manufacturing processes to align with specific customer orders, minimising waste, cutting costs, and enhancing their customers’ satisfaction.

Another example is Tesco, the UK’s largest grocer, that has used OR solutions to meet the daily challenge of managing the expiring stock of both food and non-food items.  A key step in Tesco’s value chain is what happens at the end of a product’s lifecycle. This is the last opportunity to sell an item to a customer or donate it to the community to ensure it doesn’t go to waste.

Tesco, like most retailers, discounts items that are close to being removed from the shelves.  This process is applied across Tesco’s product range, from general merchandise and clothing to fresh food. In particular, food items are reduced in price as they get closer to expiry to sell them before they go to waste.

Finding an optimal reduction strategy is a major challenge for every retail business. The question that must be answered is: By how much should the price be reduced?

There are two conflicting objectives:  to not only increase revenue but also reduce waste. Finding a solution that achieves both is a non-trivial task, but it’s what Tesco’s Data Science Team managed to do using OR.

They developed a novel multi-stage Clearance Pricing Optimisation system and deployed it across all Tesco stores in the UK where it is applied to 100,000’s of unique products annually.

The key objectives are to: 1) clear excess stock by a specific date; 2) increase revenue by finding the optimal discounts, and 3) reduce operational costs and provide further insights of in-store processes.

The solution achieved these objectives and has been a great success. Tesco has reduced the number of fresh food items going to waste by 5% and its impact on the planet, whilst at the same time increased the revenue generated by 1.5-13% across multiple food and non-food product lines.

Tesco were also delighted to be awarded the OR Society’s President’s Medal in 2022 for this work.

Like these examples, almost any organisation can use OR to solve complex problems, make cost savings, and improve decision-making. For businesses yet to explore this powerful tool, discovering its potential could be a real game changer.

 

Business & Property News, Business Advice, Business Research, News, Sales

Majority of Businesses Falling Short on Sales Targets Seek Improved Forecasting

Businesses rely heavily on accurate sales forecasting to align with projections effectively. However, recent data from revenue intelligence experts Gong sheds light on the hurdles companies encounter in this area. Over the past two years, nearly 80 percent of UK companies have failed to meet their sales forecasts for at least one quarter, largely due to the use of outdated technology and practices in projection development.

A study conducted in 2022 by the Social Science Research Network revealed that public companies’ earnings guidance is inaccurate approximately 70 percent of the time. This trend indicates that the challenge of forecasting extends beyond private companies to publicly traded ones as well. In both spheres, missed forecasts can undermine stakeholders’ confidence, signaling a lack of grasp on business dynamics and market trends. Implementing advanced forecasting tools, including artificial intelligence (AI), can enhance the precision of these forecasts.

Inaccurate forecasting adversely impacts companies and their employees, resulting in pay freezes, deferred promotions, and halted hiring processes.

Despite these setbacks, businesses remain optimistic about the coming year, with 70% planning to increase revenue projections. When surveyed about the primary obstacle to accurate forecasting, one-third cited outdated technology.

Amit Bendov, CEO, and co-founder of Gong, emphasized the obsolescence of traditional forecasting methods, saying, “The era of revenue leaders relying on spreadsheets and subjective data to predict sales is over.” He highlighted AI’s role in revolutionizing forecasting by incorporating customer feedback and assessing deal health, thus empowering leaders to make informed strategic decisions.

Encouragingly, businesses acknowledge the shortcomings of current forecasting approaches and are taking steps to address them. Thirty-four percent of respondents reported planning to alter their forecasting methods for the upcoming year, while 64 percent are exploring or have already invested in advanced forecasting technologies and systems.

Work marketplace Upwork is one company that has increased its forecasting accuracy as it has grown, with its community of independent talent earning more than $3.8 billion in 2022 across more than 10,000 skills.

“At Upwork, our sales forecasting process wasn’t providing the level of precision we needed as we entered a period of organizational change and growth amid an uncertain economy,” said Drew Korab, director of sales operations at Upwork.

“We implemented a new, AI-powered solution that gives us the data, process, and insights to more accurately predict how our Enterprise business will perform in new logo acquisition. In the first three quarters we’ve used this solution, we reached 95 percent forecast accuracy, allowing us to deliver a stronger sense of confidence to our stakeholders.”

—

The study surveyed 1,000 business leaders at privately held companies in the UK in January 2024.

 

Business, Business News, Business Research

Welsh businesses optimistic despite investment and trade challenges

Businesses in Wales remain optimistic despite trade challenges and a continued hesitancy to invest in both equipment and training, according to Chambers Wales South East, South West and Mid’s latest Quarterly Economic Survey.

In Q4 of 2023, half of Welsh businesses stated that they believe that turnover will improve over the next 12 months while 42% predicted that profitability would improve, a small rise of 2% since the previous quarter.

However, investment and trade challenges persist, affecting business plans for long-term growth.

Over the last quarter, only 23% of businesses in Wales increased their investment in plant and machinery or equipment and 16% increased their investment in training. Just over half of Welsh businesses (52%) did not change their investment plans for plant and machinery or equipment and 66% did not change their investment plans for training in Q4 of 2023.

While trade fared slightly better in Q4 than Q3 of 2023, businesses in Wales have seen decreases in sales and orders both domestically and internationally. UK sales and advance orders both fell by 35% in Q4, while export sales and advance orders to overseas markets each decreased by 44%. Almost three quarters of businesses in Wales identified new markets as an opportunity for their business to recover.

Paul Butterworth, CEO of Chambers Wales South East, South West and Mid, said: “Our latest Quarterly Economic Survey results show a small rise in business confidence and optimism in Q4; the shoots of confidence and growth are starting to appear as we begin the new year.

“However, the results also demonstrate the low growth economic climate businesses in Wales are currently operating in, as firms continue to report minimal movement in investment plans, skills development and trade.

“Building on the growth measures announced in the Autumn Statement, businesses will be looking to the Spring Statement in March for further assistance and, with a general election likely to happen this year, it is vital that a stable economy and long-term growth support is prioritised by policymakers.”

Business Research, News

Managers who can multi-task are key to cooperation between rival firms

For rival companies to successfully cooperate in the name of innovation, they need “ambidextrous” managers who can make the most of their pooled resources, research from NEOMA Business School reveals.

Antony Paulraj, Professor of Operations and Supply Chain Management at NEOMA, co-authored a study analysing the approach of over 300 companies that are collaborating with their competitors, known as “coopetition”.

According to Paulraj, coopetition broadens the possibilities of what can be achieved by any one company in isolation. To optimise the potential for innovation, he says, requires ambidextrous management.

In a management context, the term ambidextrous means handling two tasks simultaneously – i.e. an exceptionally high competency at multi-tasking. Firstly, managers must utilise pooled resources at both companies as effectively as possible; secondly, they must simultaneously explore new horizons through training staff and creating new products or processes.

“Ambidextrous management is invaluable to successful coopetition, as managers have access to a wider range of resources and opportunities. Our analysis demonstrates that ambidextrous management is essential for ambidextrous innovation – which involves both the improvement of existing products and services, and the invention of new ones,” says Paulraj.

Successful ambidextrous management directs joint investment to areas that will benefit both companies, such as building factories together or training partner teams to create more opportunities for innovation.

These managers can also facilitate more effective dialogue between partners where there is a reluctance to share skills and investment, helping to develop a joint vision for both firms.

“Coopetition involves risk and uncertainty, which can be mitigated by ambidextrous managers. It has become a tactic that is not just reserved for industrial heavyweights – smaller companies and even SMEs now look to it as a way to foster innovation,” says Paulraj.

Business, Business Research, News

Financial concerns plague over 70% of businesses globally with almost a third of businesses just hoping to survive the year

According to a new survey, 72.3% of bosses list rising costs as their top business concern.

Peninsula Group conducted a survey of 79,000 businesses across four countries – Australia, Canada, Ireland, and the UK – to see what the top priorities and concerns were for employers in 2023.

Most employers chasing growth despite recession

Growth is the main business goal for 58.6% of employers in all countries surveyed, but we can see the impact the recession is having in the UK and Ireland with 38.4% and 34.7% respectively listing survival as their main goal for the year.

Rising costs are the top concern for businesses in Canada (73%), Ireland (87.8%) and the UK (79.9%), whereas in Australia it places third. Labour shortages are the top concern for 66.2% of Australian businesses, with employee retention the second highest concern.

66% of employers offering financial renumeration to help with retention

The cost-of-living crisis and staffing shortages are having a significant impact across all four countries, with 66% of employers offering financial remuneration to help retention.

Those who are unable to offer financial incentives are offering flexible working hours (50.9%) and mental health support (30.7%) to help prevent employees leaving.

54.6% of employers have given employees a pay rise to offset the ongoing skills shortage. 49% of employers list recruitment as their biggest challenge staffing wise, with pay increase requests coming in second at 39.1%.

Only 37% of Employers back to pre-pandemic working models

We’re also seeing a trend coming out of the global pandemic, with 37% of employers having fully reinstated all pre-pandemic working models.

However, the temporary measures that were brought in during the pandemic have changed the shape of work for many, with 28.9% of employers prioritising health and wellbeing and 27.7% making some form of flexible working a permanent feature.

Alan Price, Group Chief Operations Officer at Peninsula, says “It’s truly staggering that we’re going into 2023 with a third of businesses saying their main goal is just to survive the year. This statistic clearly demonstrates the drastic impact that recent world events have had; a global pandemic, political turmoil, war in Ukraine and now recession coming in such quick succession has devastated many businesses, especially SME’s, with business owners now under pressure like never before.

“Here in the UK we can see the impact that the cost-of-living crisis and rising energy costs are having on businesses. We’re seeing ongoing strike action over pay across many sectors, and this is having a knock-on effect for all businesses. Labour costs are rising to meet the increased cost of living, and the increased cost of doing business is clearly a concern.

“It’s clear that this will be a tough year for many businesses, but there is also a mood of opportunity. Employers are seeing the value in retaining employees and, in turn, employees are reaping the benefits. More than half were given a pay raise and employers are looking at creative ways to retain employees, such as enhanced benefits packages or flexible working where a pay raise is not possible.

“For months, we’ve heard how difficult the job market is and, with skills shortages affecting many sectors as well as the cost and time involved in recruiting, it’s not really a surprise that so many businesses are concerned about the impact this will have on their business.”

Business Research, Education, News

Hybrid entrepreneurship better protects mental well-being

Entrepreneurs who work in a hybrid mode can learn to protect their psychological well-being, new research from the University of Cologne reveals.

Over a period of 29 years, the researchers Johanna Kuske, Matthias Schulz, and Christian Schwens investigated entrepreneurs’ psychological well-being in the UK across various stages of early business development.

‘Hybrid entrepreneurs’ build their own business ventures whilst still maintaining a wage paying job, to support themselves, as opposed to only focussing on their business start-up.

This combination allows hybrid entrepreneurs to experience entrepreneurial stress and try out different strategies to cope with it — a learning experience, which benefits their psychological well-being when reaching the implementation stage of their business idea, in which they leave behind their other work.

This beneficial learning effect of hybrid entrepreneurship, however, depends on entrepreneurs’ personal circumstances: According to the findings, it is only those entrepreneurs who did not face any caring responsibilities and could therefore fully focus on learning, that benefit in term of psychological well-being.

Thus, the study suggests that entrepreneurs can learn to be well even before fully committing to their entrepreneurial venture. And that it is important to make sure that their personal circumstances provide them with enough freedom to learn from their experience.

Business Research, Diversity & Inclusion, News

A Failure To Consider Language Diversity In EDI Provision Causes Problems For Multinational Firms

Multinational companies are struggling to effectively produce and embed effective equality, diversity and inclusion (EDI) focused agendas, according to research from Durham University Business School.

Despite operating on a global basis and pulling in a workforce that spans multiple continents, cultures and languages, multinational companies are often disappointed with the progress they make with regards to EDI management.

According to research by Martyna Śliwa of Durham University Business School, Sylwia Ciuk of Oxford Brookes University, and Anne-Wil Harzing of Middlesex University, the difficulty often stems from having too narrow a focus when it comes to what matters in EDI provision.

Martyna Śliwa says,

“Multinational companies recognise the importance of the EDI agenda, but often struggle to implement it and leverage its strategic potential. Often, their focus lies on a small range of diversity and dimensions which fail to include other important factors, such as language.”

A lack of attention to the management of linguistic diversity is revealed to be of particular concern. Even though language based stereotyping and discrimination are recognised barriers to work and career outcomes for minority individuals and groups, the researchers say too little focus is paid to fostering linguistic diversity and inclusion in such organisations.

Their study seeks to address this by proposing a two-step framework for multinational companies to apply when creating and implementing their EDI agendas.

The first step seeks to change the way multinational companies think about diversity and differences.

Martyna Śliwa says,

“We need to stop viewing diversity and differences primarily in negative terms, or seeing them as challenges to overcome or work around. Instead, viewing diversity in a positive light, and differences as something fluid can allow us to act differently.”

To achieve such a shift, those leading teams or departments within multinational firms must recognise multiple languages and multi-lingual workers as a resource, and question the assumption that the non-dominant languages of the company are somehow inferior.

The second step concerns changing multinational companies’ actions.

Deliberate steps need to be taken to challenge expectations and norms that members of non-dominant groups – those who communicate at work in a foreign language – need to adjust to the dominant group’s way of communicating.

Sylwia Ciuk says,

“Displaying positive attitudes towards language differences and an openness to non-standard language norms, as well as adjusting the communicative behaviour of all members of the organisation are all small, but vital steps to enhance inclusion.”

Reciprocity is key here. Anne-Wil Harzing says,

“Successful interactions between those with different levels of fluency in the language of their interaction should not solely depend on the skills of non-dominant language users. Aside of putting additional pressure on such colleagues, there is a significant danger of miscommunications occurring.”

The framework proposed by the researchers brings considerable practical implications for those operating in human resource management. Though the study displays the framework as a means of linguistic diversity in particular, the researchers state the framework can be applied to any other area of the EDI discussion.

The study has been published, and is available to read via the Human Resource Management Journal.

Business Research, News

Consumers are more likely to forgive family firms when a product fails

Consumers are more inclined to forgive family firm brands than non-family firm brands in product harm crisis situations, reveals new research from NEOMA Business School.

This is when a product fails to comply with standards, and risks attracting widespread negative publicity for the brand in question as a result.

According to Subhadeep Datta, Assistant Professor of Strategy and Entrepreneurship at NEOMA Business School, and Sourjo Mukherjee from the Birla Institute of Technology and Science, even when companies are caught engaging in questionable impression management tactics in the aftermath of such a crisis, family firms retain their advantage.

This is because family firms appear more human-like, with relational values and virtues. As such, they tend to hold a higher reputation and more trust from consumers and stakeholders than non-family firms.

The researchers’ findings indicate that this trust is not a fleeting, momentary feeling among consumers. It is relatively resilient and resistant to breakdown even in the face of hurdles such as product harm crises.

“By extension, it seems reasonable to expect that a brand’s family firm status would help preserve its image and reputation following such crises,” says Professor Datta.

Previous research by the Institute of Family Business (UK) indicates that many family firm owners and managers have reservations about the extent to which family should feature in their branding.

Concerns were raised over negative responses regarding perceived lack of professionalism and nepotism, as well as increased family visibility during crisis situations. However, the findings of this new research indicate the positives far outweigh the possible negatives.

The researchers believe the findings will help family firms in developing their branding strategies. The study was published in the Journal of Business Research.

Business Research, News

Cashflow growing concern for business leaders as SMEs face new challenges from rising costs and inflation

  • A new survey by alternative lender Capify finds most SME business owners concerned about cashflow and cash reserves, with over half lacking confidence in existing banking partners to meet future borrowing needs. 
  • But survey also points to resilience and optimism in UK SMEs, with 60% expecting turnover and headcount growth in the next 12 months.

A growing number of business owners are being kept awake at night by worries over cash flow. A Q1 2022 Confidence Survey released today by small business lender Capify, finds 37% citing cash flow as a major concern (up 14pp from 23% in Q4 2021). Whilst a further 13% were concerned specifically about non-payment of invoices.

The survey, in which the majority of respondents reported turnover of between £1m and £10m, also found just under 60% of SME owners worried about the impact of rising costs and inflation on their businesses.

Despite 56% reporting turnover growth in the past 12 months, the survey finds a more challenging conditions for the first quarter of 2022. Reflecting on business performance in Q1 2022, 37% of companies say they are behind on their targets.

These challenges appear to be contributing to a negative trend in the cash position of UK SMEs. Over half of the survey respondents (53%) were concerned about the levels of cash in the bank, whilst 43% report having less than £50,000 in the bank (an increase of 6pp on Q4 2021).

47% of respondents identify these working capital/ cash flow struggles as the primary driver for seeking external finance. But 52% of those surveyed state that they would not be confident of securing that finance from their traditional banking partners.

John Rozenbroek, CFO/CCO at Capify, said: “Cashflow continues to be a real and growing issue for UK SMEs”

“Some businesses have endured a torrid time over the past two years. UK SMEs have had to develop a deep resilience to deal with the impacts of Brexit, the pandemic and global supply chain complexities”.

“Like all of us, UK business owners were hoping that 2022 would see an return to ‘normal’ business operations and growth. Unfortunately, the impact of rising prices and the tragic war in Ukraine is adding further challenges and worries to this vital part of the economy. There is a growing sense that they need help”.

Whilst many SMEs made use of the Government’s support mechanisms during the pandemic, there seems to be a widespread belief that the Treasury is doing little to help businesses deal with the new challenges. 94% of UK SMEs believe that the Chancellor’s Spring Budget will have no positive impact on business stability.

Despite those concerns, the survey found cautious optimism in its SME respondents, with 57% projecting a growth in turnover in the next 12 months.

Exactly half (50%) grew their profits over the past 12 months – with larger SMEs faring better than their smaller counterparts. 39% of larger SMEs (£5m-£10m turnover) grew profits by over 10% compared to 31% of smaller SMEs (Under £500k turnover).

Additionally, 51% of businesses expect to grow their headcount 2022, up 6pp from 45% in Q4, with 14% aiming for growth of 20% or more. Attracting and retaining the right talent is clearly a major enabler for SME growth, with 48% looking to invest in their acquisition and development of personnel.

Mr Rozenbroek added: “It is encouraging to see businesses responding to the challenges of today with pragmatism and cautious optimism for the future. The fact that the majority of our respondents are projecting growth in 2022 is testament to the resilience they have had to develop over the past years.”

“To ease the cash crunch and address the staffing shortages, access to finance will play a critical role over the coming months. It is likely that things will get worse before they get better for the UK SME community, but at Capify we will continue to help small business owners in any way we can.”

The survey received responses from UK SMEs across a wide range of sectors, including construction, manufacturing, professional services, retail and IT services. Almost 60% of respondents had been trading for over 15 years.