6 April 2022Press Releases
Inflationary pressures pose a huge risk to the SME sector with 87% of owner managed businesses reporting these will impede their growth in 2022. That is one of the key findings of a survey of 335 of these businesses launched by the Association of Practicing Accountants (APA) today.
Other findings include:
Despite these challenging economic headwinds there is also evidence that those businesses that have survived the pandemic are now more resilient and more confident.
Commenting on the findings APA Chairman Martin Muirhead said:
“Having navigated Brexit and the pandemic owner managed businesses are now confronted with the double challenge of rising inflation and increased energy costs. Many of these businesses have done well to survive the last 2 years. Having looked forward to a period of economic stability post-Covid they are confronted with the opposite. It is imperative that the UK Government take a more realistic view of our future trading relations with Europe recognising that labour shortages coupled with an altogether more challenging export environment pose a real threat to recovery.
Policy Makers also need to recognise that uncertainty remains across many sectors of the economy and that businesses want reassurance as well as clear and unambiguous advice and support. Adopting a flexible approach to business policy which recognises the many challenges facing owner managers will be key to a sustainable recovery.”
A copy of the detailed research report is available here
More detailed sectoral and regional breakdowns are available on request.