by Some 630,000 small and micro businesses are at risk of going bust amid skyrocketing costs and pressure on consumers, a new study finds.
Analysis of data from 2.3 million UK micro businesses – typically those with fewer than 10 employees – highlighted the growing pressures on small businesses from skyrocketing costs, such as B. increased energy bills.
The Venture Forward report, produced by GoDaddy, indicates that the potential collapse of these companies would mean a roughly £12 billion hit to the economy.
It comes ahead of an important spring budget for Prime Minister and Chancellor Jeremy Hunt.
However, the study found that less than one in five entrepreneurs (19 percent) said Rishi Sunk “acts in the best interests of small and micro businesses.”
More than three-quarters (77 percent) of entrepreneurs said they believe the cost of living crisis is the biggest challenge they have faced, with many highlighting the impact of higher energy bills.
When asked how MEPs can help micro-enterprises, the most common answer, at around 42 percent, was to offer tax incentives.
Business owners also requested technical support for business development and help with digital strategy.
We are concerned that the energy relief program will expire in April and would like to see the government introduce targeted support for energy-intensive companies like ours
Chris and Sarah Fryer who run Magpye
Newcastle-based Chris and Sarah Fryer, who run vegan cake shop Magpye, said: “As a bakery we use a lot of energy so the rising costs of gas and electricity have increased our overheads dramatically.
“We are concerned that the energy relief program will expire in April and would like to see the government introduce targeted support for energy-intensive companies like ours.”
Andrew Gradon, Head of GoDaddy UK & Ireland said: “Venture Forward demonstrates the tremendous contribution made by UK micro-enterprises.
With more than 600,000 micro-enterprises saying they risk going under this year, it’s crucial they get the right support to offset the rising costs of doing business
Andrew Gradon, Head of GoDaddy UK & Ireland
“They have the power to add billions to the economy while creating jobs and opportunities in their local communities.
“But the research also highlights the potentially catastrophic consequences the cost-of-living crisis could have for them.
“With more than 600,000 micro-enterprises saying they are at risk of going under this year, it’s crucial they get adequate support to offset the rising costs of doing business.”
