Navigating Uncertainty: Owner-Managed Businesses Remain Optimistic Amid Election and Economic Challenges
At FinPax, we understand the complexities that owner-managed businesses (OMBs) face in today’s volatile market. Our latest survey, conducted in June 2024, offers a detailed analysis of the current business climate in the UK. Despite a slight dip in confidence since December 2023, largely due to sustained high business costs and uncertainties surrounding the upcoming General Election, the overall outlook remains positive. It’s encouraging that businesses remain confident about meeting their profit and revenue targets for the year ahead.
Key Challenges and Shifting Concerns
High-interest rates continue to be the most significant challenge for OMBs, though concerns have eased slightly compared to previous surveys. Inflation is becoming less of an issue, but other cost pressures and staffing challenges persist. Notably, high business costs and difficulties in retaining and recruiting staff are still prominent hurdles.
Cybersecurity and Data Protection Concerns
Cybersecurity and data protection remain top priorities for business owners, especially given the significant barriers they face, such as a lack of in-house expertise and the high costs associated with IT infrastructure and support. Nearly a third of businesses reported experiencing cybersecurity or data protection issues in the past year, underscoring the need for enhanced defenses against cyber-attacks.
Political Climate and Business Sentiment
The upcoming UK General Election is another source of uncertainty. Regardless of the election’s outcome, business owners want the next government to prioritize easing trade barriers with the EU and reducing Brexit-related red tape. These measures are seen as crucial to fostering a more business-friendly environment and supporting growth.
Conclusion
Our survey highlights a landscape of cautious optimism among OMBs. While challenges such as high business costs, recruitment difficulties, and cybersecurity threats persist, businesses are adapting through technological advancements and strategic planning. The political landscape adds an additional layer of uncertainty, but the overall sentiment remains one of resilience and determination to thrive in the face of evolving challenges. As the year progresses, it will be crucial for businesses to stay agile and proactive in addressing both existing and emerging issues.
At FinPax, we are committed to supporting OMBs in navigating these challenges and achieving their business goals.