The 5 biggest risks facing every small business

From staff turnover to cyber security – here are the top challenges that all businesses need to be hyper aware of.

Geopolitical and macroeconomic uncertainty

The war in Ukraine rages on. This has also been accompanied by spikes in global energy prices, soaring inflation and growing tensions between the West and China. These challenges have also resulted in short supply of skilled labour.

The uncertain economic climate is also making employees anxious, while supply chain disruptions and rising costs mean businesses are having to operate with less – piling even more pressure on teams.

Cyber security

Cyber security topped the ECIIA’s annual business risk survey for the fifth year running. Eight out of ten respondents cited it as a top five risk, reflecting the rapidly weaponised cyber-attack landscape.

Staff turnover

A 2023 report by PwC found that nearly 25% of UK workers planned to jump ship in the next 12 months. Such constant upheaval creates onboarding and recruitment challenges. It also scuppers organisational culture and staff morale.

Reasons for high staff turnover include lack of progression opportunities, unfair compensation, unsatisfactory working environments, poor management and a lack of flexible working opportunities, such as hybrid working.

Forced office working

The career website Monster reports that two-thirds of survey respondents would quit rather than return to the office full time.

The Integrated Benefits Institute, meanwhile, has found that employees who work remotely or in a hybrid environment reported being more satisfied (20.7%) and more engaged (50.8%).

According to management consultancy Gallup, the optimal engagement boost occurs when employees spend 60% to 80% of their time – or three to four days of their work week –working off-site.

The answer here, therefore, seems to be a simple one – to keep hold of staff, it’s vital to ensure that your business not only offers hybrid working, but has the tech in place to make doing so as smooth as possible.

Being unprepared for the Great Switch Off

The Great Switch Off is the biggest communications change in a generation.

In short, it means that any PSTN-based products that your business uses today will need to change.

And while the switch off won’t take place until January 2027, it’ll pay dividends to ensure that your business is ahead of the game. This is not only because you’ll be leaving legacy systems behind, but you’ll also be keeping pace with peers who are already embracing this new tech and making waves with it.

There are several great partners out there who can support with your migration. Be sure to research your options and look for a company who can help make this process a smooth and successful one – readying your business for the future.

For more support, guidance and free 1-2-1 business advice, you can also speak to one of our V-Hub Digital Advisers