Energy price cap will support small business growth this Autumn - 55% of business owners have struggled with rising costs
Thursday 8th September 2022
Novuna Business Finance today welcomes the Government's announcement to support small businesses with a six-month cap on energy costs.
In recent months, the growth outlook of UK small businesses has been in the balance - Novuna Business Finance's tracking data revealing that 34% of small businesses predict growth going into the autumn, with 48% standing still and 17% fearing decline.
Despite huge economic uncertainty, rising energy prices and disruption to supply chain, 70% of small business leaders polled have been actively looking at ways they can protect their enterprises. Of these businesses, costs and cash flow have been the dominant issues to tackle - 55% said they needed to reduce fixed costs, 30%, were trying to improve cash flow and 25% were trying to tackle late payment.
Dealing with rising costs was the biggest worry for small businesses fearing their business would contract in the coming months - here, 73% of respondents are desperately looking at ways to keep fixed costs down and 28% are trying to tackle late payment issues.
Jo Morris, Head of Insight at Novuna Business Finance comments: “Today's news on a six-month energy price cap for businesses will be welcome news for small businesses across the UK. Our quarterly tracking research suggests the signs of resurgent growth forecasts as Covid restrictions fell away has been checked by new challenges rooted in tackling inflation, soaring costs, staff shortages and rising fuel prices. Today's news gives them one less issue to worry about for the winter months and a degree of certainty they can plan against. Our latest data suggests that whilst growing businesses are looking to invest in new equipment, those enterprises that are not growing are most worried about costs and cash flow. Today's announcement by the Government will go some way to help many small businesses move toward and plan how they will grow rather than worry about how they will stand still."