Productivity Remains Top Concern for Small Business Owners, Survey Finds
Small business owners continue to grapple with various challenges, such as cost inflation and wage increases. However, a recent survey conducted by Simply Asset Finance reveals that productivity remains their biggest worry. A staggering 78% of small business owners cited concerns about productivity within their business or staff as their primary concern.
The survey, which included 796 small firms, also found that 74% of respondents were worried about rising operational costs, while 70% expressed concerns about supply chain issues. In light of these challenges, some experts suggest that investing in technology could be a viable solution to optimize day-to-day productivity for both owners and workers.
Ylva Oertengren, the Chief Operating Officer of Simply Asset Finance, emphasized the importance of restructuring business models to drive productivity within SMEs. She highlighted two specific solutions: adding more people to the business or investing in new machinery, efficient production lines, and technology that can increase output per hour.
Ala Uddin, Co-founder of business services comparison site Beasy, expressed no surprise at the survey’s findings. Uddin explained that small business owners already spend over 5.5 hours per week managing basic business admin, costing them over £7,000 per business. He believes that reliance on manual processes hinders business progress and growth and recommends prioritizing AI and cloud computing technologies to free up time for strategizing, innovating, and growing.
Despite concerns about productivity, Mike Randall, CEO of Simply Asset Finance, remains optimistic about the future growth of SMEs. He acknowledges the unprecedented hardships faced by small businesses but points out that new data reveals growing confidence among small business owners, even though it remains in negative territory.
According to the Federation of Small Businesses’ third-quarter Small Business Index, confidence improved from -14.2 in the previous quarter to -8 points in the three-month period ending in September. While still worse than the first quarter’s -2.8, this upward trend suggests potential growth on the horizon for small businesses.
In conclusion, small business owners are grappling with productivity concerns amidst other challenges. However, by investing in technology and adopting more efficient business models, they can overcome these obstacles and pave the way for future growth.