42% of small businesses in financial difficulty
Posted on
Small firms still struggle with start-up costs with 52% admitting they may not be able to recover.
New research has revealed 42% of small businesses are having financial problems with only 33% stating their company is "going from strength to strength".
The study, which was conducted with 732 small and mid-sized firms, revealed the main cause for financial concerns was attributed to overspending during start-up years (52%), followed by renting or buying expensive property (48%), over hiring (39%), inefficient pricing (38%) and lack of business (33%).
The research demonstrates that small and medium sized firms need to ensure they plan ahead with the majority of financial difficulties coming from entrepreneurs failing to forecast expenditure. In addition, whilst 25% of participants who indicated they were in financial trouble stated they were confident they had moved on and learned from previous mistakes - 52% worried their business would be unable get past them.
The research highlighted disappointment among business owners as over a fifth (22%) of respondents admitted to launching their own business "to get rich". Other popular reasons for starting a business were "wanting to be my own boss" (37%) and work flexibility (32%).
ActSmart, the business support organisation for specialist retailers, can help small businesses manage their finance with access to a range of services designed to cut your costs and increase your sales.
ActSmart will be powering the Business Advice Centre at Craft, Hobby + Stitch International from 21st - 22nd September. If you need guidance on managing your finance or any other aspect of starting or growing your business, come along to stand E26 to find out how joining ActSmart can help your business, and take advantage of our exclusive show offer...