Productivity Remains Top Concern for Small Business Owners, According to New Research
Small business owners are facing a multitude of challenges, including cost inflation and wage rises. However, one issue stands out as their biggest concern. A recent study conducted by Simply Asset Finance revealed that 78% of small business owners identified productivity concerns within their business or staff as their primary worry.
The survey, which included 796 small firms, also found that 74% of respondents were worried about rising operational costs, while 70% feared further supply chain issues. In light of these challenges, some experts suggest that investing in technology to optimize day-to-day productivity could be a viable solution.
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 aimed at increasing output per hour.
Ala Uddin, co-founder of business services comparison site Beasy, expressed no surprise at the findings. Uddin emphasized the need for small business owners to prioritize AI and cloud computing technologies, which can help streamline processes and free up time for strategic thinking and growth.
Despite concerns about productivity, Mike Randall, chief executive at Simply Asset Finance, remains optimistic about the future. He believes there is still potential for growth among SMEs, despite the unprecedented challenges they have faced in recent years.
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 lower than the first quarter’s -2.8.
Overall, small business owners continue to grapple with productivity concerns, but there are opportunities for growth and improvement on the horizon. By leveraging technology and adopting innovative strategies, these businesses can overcome challenges and thrive in the ever-changing business landscape.