A recent survey of 500 small UK businesses has revealed that seven out of 10 are worried about rising costs potentially leading to closure. Despite their efforts to reduce overhead costs, 69% still fear the possibility of shutting down.
The main culprits behind these escalating costs are material expenses and hidden fees charged by banks. Small businesses estimate they are spending over £3,700 annually on concealed charges for international transactions, equivalent to three months’ worth of rent in major UK cities.
To combat these challenges, many businesses are trying to negotiate better rates with suppliers and cut back on energy usage. However, some have had to resort to implementing redundancies as a last resort.
Arun Tharmarajah, director of European payments at an international money app, emphasized the tough decisions business owners are facing in these uncertain times. He highlighted the importance of finding creative solutions that don’t negatively impact customers.
One business owner, Davide Troise, is looking to expand his barbershop business into Europe but is facing obstacles with UK banks and their hidden fees. He believes that improving legislation to ban these fees would greatly benefit small businesses.
Overall, small businesses are grappling with increased shipping costs, staff wage hikes, and other challenges. Despite these obstacles, many remain hopeful and determined to navigate through these tough times.