A recent survey of 500 small businesses in the UK has revealed that a staggering seven out of 10 are worried that rising costs could lead to closure. Despite their concerns, 88% of these businesses are trying to cut overhead costs, but 69% still fear the worst.
The main culprits behind these escalating costs are material expenses and hidden fees from banks. Small businesses estimate they are spending over £3,700 annually on undisclosed charges for international transactions, equivalent to three months’ rent in major UK cities.
To avoid passing on these costs to consumers, many businesses are negotiating better rates with suppliers and reducing energy usage. Unfortunately, 56% have had to resort to layoffs, with 84% considering it a last resort.
In response to these challenges, Wise has launched the ‘End the Opt Out’ campaign to push for transparency on fees for international transactions. Arun Tharmarajah, director of European payments at Wise, emphasized the need for small businesses to find creative solutions without burdening customers.
Davide Troise, founder of Troise & Sons barbers in London, is looking to expand to Spain but is facing obstacles with UK banks due to hidden fees. He highlighted the difficulties many small businesses face when trying to expand internationally.
Despite these hurdles, small businesses remain resilient and are exploring ways to navigate rising costs. By staying agile and innovative, they hope to overcome these challenges and continue to thrive in the ever-changing business landscape.