UK businesses continue to invest in growth despite uncertainty concerns
British businesses are worried about the impact of financial uncertainty on their businesses over the next 12 months, according to a new survey, with rising inflation, energy prices and raw material costs raising concerns.
The research by Marsh, an insurance broker and risk advisor, found that 31% of businesses are concerned about employee health and well-being, and 23% are worried about supply chain disruption.
The data was collected in May and June this year, from more than 2,100 businesses with annual turnover of between £100,000 and £500m.
While financial uncertainty is the most concerning issue for UK businesses, only 34% of respondents cited it as a significant concern, down from 43% in 2021.
More positively, half of respondents expect an increase in productivity, 47% expect an increase in turnover and 46% expect an increase in profitability.
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“The UK risk environment over the last year has been heavily impacted by macroeconomic changes, as well as the trickle-down effects of geopolitical events,” commented Alistair Fraser, CEO, commercial and corporate at Marsh UK.
“From sole traders and fast-growing companies to large established corporates, no commercial entity in the UK is exempt from requiring a robust approach to risk management. This report tells a story of the very broad spectrum of risks facing UK businesses and provides practical advice on how to tackle them, helping strengthen the resilience that they need to grow with confidence.”
Read more: UK SMEs remain ambitious amid uncertainty
Although businesses are operating in a difficult environment, nearly half of the respondents also expect to increase capital investment over the next 12 months. Small and medium-sized businesses are the most confident in their future prospects, while microbusinesses are more cautious.
With many businesses continuing to invest for growth despite the challenging market conditions, there could be increased opportunities on the horizon for alternative lenders as well.
However, a recent report from SME funder Praetura found that 59 per cent of such businesses struggled to access financing in the last five years. And 46 per cent of small businesses see access to finance as one of the biggest challenges they face.
Read more: SME funding gap: Firms unable to access growth finance