Productivity Remains Top Concern for Small Business Owners, Survey Finds
Small business owners continue to grapple with a range of challenges, including cost inflation and wage increases. However, one issue stands out as their primary concern. According to a recent survey conducted by Simply Asset Finance, 78 percent of small business owners identified productivity concerns within their business or staff as their biggest worry.
The survey, which included 796 small firms, also revealed that 74 percent of respondents were worried about rising operational costs, while 70 percent feared further supply chain issues. In light of these challenges, some experts suggest that investing in technology could be a 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 highlighted two specific solutions for driving productivity within SMEs. One option is to hire more people, but given the current shortage of skilled workers, this may not be feasible. The other solution involves investing in new machinery, more 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. He noted that small business owners already spend over 5.5 hours per week managing basic business admin, costing them over £7,000 per business. Uddin believes that prioritizing AI and cloud computing technologies can alleviate this burden, allowing owners to focus on strategic planning, innovation, and growth.
Despite concerns about productivity, Mike Randall, CEO of Simply Asset Finance, remains optimistic about the future growth of SMEs. He acknowledged the unprecedented hardships faced by small businesses in recent years but emphasized that there is still “growth on the horizon.”
In related news, new data revealed that small business confidence is gradually improving, although it remains in negative territory. According to the Federation of Small Businesses’ third-quarter Small Business Index, confidence stood at -8 points in the three-month quarter ending in September. While this is an improvement from the previous quarter’s -14.2, it is still worse than the first quarter’s -2.8.