88% of UK businesses are currently struggling to grow
The BoE predicts that the UK will enter recession in the fourth quarter of 2022. Companies are already struggling, according to a study by a prominent digital marketing agency.
— Daniel Ricardo, Director Strategy Plus
BIRMINGHAM, WEST MIDLANDS, UK, Aug. 21, 2022 /EINPresswire.com/ — 88% of businesses are currently struggling to grow.
The Bank of England predicts that the UK will enter a recession in the fourth quarter of 2022. Companies are already struggling, according to a study by a prominent digital marketing agency.
The ramifications of pandemics, Brexit and inflation are well documented. A study conducted by Strategy Plus aimed to establish whether their customer’s story reflects broad business sentiment. Are UK businesses struggling as hard as they’ve heard? And which of the latest headline-grabbing factors was to blame?
What did the survey say?
The survey asked business owners one multiple-choice question.
Q: Struggling to grow your business?
While 43% of respondents reported struggling growth as a result of inflation, 8% attributed it to COVID-19 loan repayments and 7% said Brexit would affect growth potential. I think I’m giving 30% felt he had a mix of all three, while only 12% felt he was not struggling to grow his business.
That means a whopping 88% of businesses are struggling to grow.
The numbers for the second quarter of 2022 also show a surge in companies filing for bankruptcy.
“I see it every day”
As a digital agency, Strategy Plus works with many different businesses across a wide range of niches. As a service-based business, their job is to support UK businesses with websites, content, marketing and other forms of digital services.
Daniel, director of Strategy Plus, said the company decided to conduct an investigation after a spike in customers expressing genuine concerns about paying their bills.
“Our agency has weathered the banking crisis and pandemic, but in the last two months we have seen more than ever specific concerns from business owners about where things are headed. He went on to suggest that clients have listed many issues they face and couldn’t name just one reason why companies are struggling.
“Recently, we have seen seven customers go bankrupt, which is very sad. I was running a high yield business, many wanted payment plans due to cash flow issues, while others thought their growth plans stalled because they couldn’t get staff. We also saw these otherwise successful companies lag behind VAT bills due to high energy prices, and as a result of COVID-19 loans that saw other companies go bankrupt. We also confirmed that repayments have increased as a result.Overall, it’s sad to see, for a myriad of reasons.”
Flexibility is Key
With inflation, Brexit and coronavirus repayments weighing on businesses across the country, flexibility has been key to navigating these turbulent times.
“We had to be flexible. By giving our customers the flexibility to pause the service or modify it as needed, they will be much more loyal when they recover. I understand.”
Daniel and his team are coming up with ways to help businesses weather the storm. He continued, “Naturally, companies will try to cut costs. We need to make innovative investments.”