Financial challenges are the biggest concern facing one in ten businesses in 2022, with cash flow a common theme.
Over a fifth (21%) have relied on financial support from the government during the last year of the pandemic and uncertainty remains, so their apprehension is understandable.
Additionally, over a quarter (28%) are worried about the impact of Brexit on cash flow. A further challenge is expected from the late payment of invoices and orders. 21% of respondents have noticed a decrease in consumer spending this year.
The outlook for 2022 is more optimistic for some industries that were hit hard by the pandemic. Salons and hospitality venues were shut for a large portion of 2021, with events and travel also restricted. An increased number of business owners and leaders in these sectors are expecting a year of growth.
But not all expect growth this year. 8% of businesses expect to make a loss, and one in ten expect to close their business in the year ahead.
Almost a quarter (24%) say that finding funding to grow their business is holding them back, while one in five businesses surveyed expressed worries about lack of support if further Coronavirus restrictions prevent them from trading.
21% of businesses relied on government financial support during the last year of the pandemic.
Listed here are the industries that required the most aid:
UK small businesses are concerned about cash flow and the impact of late payments on their business in 2022. Late payments are of most concern for IT, leisure, sports/tourism and media/internet businesses.
Over a third (38%) of businesses in the retail sector say that they are “constantly” chasing late payments and a quarter add that this has a worrying impact on cash flow.
I am continually chasing late payments to my business
Late payments have a worrying impact on my cash flow
I am worried about how Brexit could affect my cash flow