This informal CPD article, ‘SME Owners in Crisis’, was provided by Business Doctors, a business training provider that specialises in provision of learning for professional firms.
Business owners have been under pressure since the onset of Covid back in 2019. Encouraging the workforce to return to the office following months of home and hybrid working, operating with staff shortages and depleted supply chains are all issues that made returning to pre-Covid strategies almost impossible for many businesses.
And with subsequent challenges including the Ukraine conflict, rising inflation, high energy costs, strike action and reduced consumer spending, things are unlikely to improve in the foreseeable future.
How are business owners feeling now?
Research from Bibby Financial Services (BFS) says that almost four in five (79%) SME owners in the UK feel that the current economic landscape is worse than during the pandemic. Simply Business report that a mental health crisis is looming among SME owners. Backing this up, a Mental Health survey reveals that up to four in five small business owners admit to experiencing poor mental health. Another study commissioned by AXA UK, revealed that 44 per cent of 500 SME owners feel they're currently unable to do the best possible job for both them and their staff.
What help is available for SMEs?
There is an abundance of local business support groups, ranging from local Chambers, Federation of Small Businesses (FSB), LEP Networks, Growth hubs, LAs, and UK Gov. Whilst they all provide reliable sources for business information and technical advice, for some reason this type of support is not readily being taken up.
According to a Longitudinal survey in August 22, only 43% percent of businesses surveyed had heard of the LEPs and only 29% had heard of growth hubs. Perhaps the smaller the business, the more unlikely they are to ask for help?
Where are SMEs going for help?
BEIS reported that in the last 12 months, 61% of small businesses sought advice from consultants, accountants, and legal representatives. Because business owners already have an established relationship with their accountants or legal representatives, it’s no surprise they are on the list. And they can be an extremely useful resource for specific issues, like managing cash flow.
There’s no disputing they come highly skilled in their respective fields, but are they are they capable or forthcoming to provide the emotional support that is clearly needed to help SMEs out of this crisis?
A business mentor/coach may be better suited to fill this gap. Skilled in every aspect of running a business, a mentor/coach is a good all-rounder. A good listener, confidante, be happy to share their own experiences, challenge, draw upon their business skills and ultimately be able to provide the emotional support that business owners need.
Matthew Levington, Co-Founder of the Business Doctors network, understands that sharing confidences can be a challenge, even for those working with family members.
“Being the boss is hard work and can be a lonely place. It’s not easy for individuals that have built up a business single handed, to open up to others about their concerns. We have found that talking to someone who has been in the same place and experienced similar challenges, can provide huge relief.”
There are 5.47 million small businesses in the UK, they represent 99.21% of the total business population making them by far the most common type of business in the country. We need to do more to support them and in turn support our economy.
We hope this article was helpful. For more information from Business Doctors, please visit their CPD Member Directory page. Alternatively, you can go to the CPD Industry Hubs for more articles, courses and events relevant to your Continuing Professional Development requirements.
References
- https://www.simplybusiness.co.uk/knowledge/articles/2021/01/survey-reveals-looming-mental-health-crisis-among-sme-owners/
- https://mentalhealth-uk.org/blog/four-in-five-small-business-owners-tell-us-theyre-experiencing-poor-mental-health/
