One-in-10 of the UK's small and medium businesses fear they may go under in 2023 due to rising costs.
- One-in-10 (10%) of SMEs fear they may lose their business in 2023 according to new research from Vodafone.
- Many entrepreneurs say they will be hit by a triple whammy of soaring costs, shortage of labour and dwindling consumer spending in 2023.
- Rising costs of fuel and power (57%), staff wages (34%), broadband and phones (32%), rent/mortgage (32%) and transport/distribution (30%) lead the list of main worries for small business owners.
- Almost half of all SME bosses said they were turning down the heating and switching off lights to save money, while one-in-four planned to ask staff to work more days from home.
- Following the findings, Vodafone has relaunched its 12-months free broadband packages for small businesses to help them stay connected with one less bill to worry about this winter.
Bosses of small and medium firms fear their businesses will not survive 2023 because of the financial crisis, according to new research from Vodafone Business, UK.
Small business owners across the UK fear they will be hit by a triple whammy of soaring costs, shortage of labour and dwindling consumer spending, from which they may not recover. Almost three-quarters of owners and managers in the survey say they have real fears for the future, with one-in-ten saying they may not survive the year at all.
The study of small and medium business owners found that the rising costs of fuel and power (57%), staff wages (34%), broadband and phones (32%), rent/mortgage (32%) and transport/distribution (30%) lead their list of concerns going into 2023. To help reduce costs and save money, almost half of all SMEs said they were turning down the heating and switching off lights, while one-in-four planned to ask staff to work more days from home.
Cost of living crisis: What small businesses are worried about
From customer spending to working from home, small businesses told us about the trends and topics that they’re keeping an eye on in these uncertain times.
According to the study, most small business owners are now working a 46-hour week on average, or 10 hours more than the national average, and that most expect to have to put in even longer hours in 2023 to make ends meet.
The research is revealed as Vodafone relaunches its 12-months free broadband for small businesses offer to help them stay connected and give them one less bill to think about this winter.
Available on a 24-month contract, the offer is open to all new and existing Vodafone customers. And, with nothing to pay on their broadband services for 12 months*, small businesses can expect to save up to £348, providing much needed relief on an essential service.
Andrew Stevens, Head of UK Small and Medium Business, Vodafone said: “Whilst these findings may not be a surprise, they remind us of the many challenges small and medium businesses continue to face heading into 2023.
“SMEs are the beating heart of the UK economy and will be essential in helping strengthen our economy, we all therefore have a responsibility to ensure we are doing everything we can to help them thrive and survive. That’s why we’ve relaunched our 12 months free broadband offer to provide small businesses with one less bill to worry about in 2023.”
Find out more about Vodafone’s free business broadband for a year offer.
As the cost of business essentials continues to rise, Vodafone launched Pulse Connect in September 2022, a first-of-its-kind converged and flexible solution for SMEs. It offers business-grade broadband, unlimited calls to UK mobiles and landlines, collaboration (Microsoft 365 Suite), and cloud calling tools – all in one complete solution – and covered by just one monthly bill.
Find out more about how Vodafone Pulse Connect can help your small business.
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Vodafone launches Vodafone Pulse Connect, a converged, flexible and secure solution for small and medium-sized enterprises
Vodafone Pulse Connect bundles business-grade broadband, unlimited calls to UK mobile and landlines, collaboration (Microsoft 365 Suite), and cloud calling tools into one complete package with just one monthly bill..
Notes to editors:
*Once the initial 12-month period passes, the monthly fee will revert to the standard rate of £26 (excl. VAT) a month for Business Broadband Superfast 1 and £29 (excl. VAT) a month for Business Broadband Superfast 2. There will be a one-time fee of £20 to cover set up costs, with no further payment required until the thirteenth month. The offer will be available until 2 February 2023.
