Productivity Remains Top Concern for Small Business Owners, Survey Finds
Small business owners continue to grapple with various challenges, including rising costs and supply chain issues. However, a recent survey conducted by Simply Asset Finance reveals that productivity concerns within their businesses or staff remain their biggest worry. A staggering 78% of small business owners expressed their concerns about productivity.
The survey, which involved 796 small firms, also highlighted that 74% of respondents were worried about increasing operational costs, while 70% feared potential supply chain disruptions. 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 enhance productivity. She suggested two specific solutions for driving productivity within SMEs. The first option is to hire more people, but Oertengren acknowledged the shortage of skilled workers. The second option involves 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 findings. Uddin stated that reliance on manual processes hinders business progress and growth, as small business owners spend over 5.5 hours per week managing basic business admin, costing them over £7,000 per business. Uddin recommended prioritizing AI and cloud computing technologies to free up time for strategic thinking, innovation, and growth.
Despite concerns about productivity, Mike Randall, CEO of Simply Asset Finance, remains optimistic about the future growth of SMEs. He believes that despite the unprecedented challenges faced by small businesses in recent years, there is still “growth on the horizon.”
In related news, new data revealed that small business confidence is growing, although it remains in negative territory. According to the Federation of Small Businesses’ third-quarter Small Business Index, confidence improved to -8 points in the three-month quarter ending in September, up from -14.2 in the previous quarter. However, it is still worse than the first quarter’s -2.8.