Small firms are being pushed to the corner by increasing businesses costs. Owners are worried that their companies will not survive if the trend continues, research finds.
Overheads have risen by 22.8% in the past 5 years, as shown by the Business Cost Index, compared to the 19.4% climb of the CPI. The main drivers are more expensive transportation, energy and insurance bills. The cost inflation is now eroding small firms’ profit margin so severely that 78% of the 750 business owners (studied by the Centre of Economic and Business Research) identify cost inflation as the most significant threat to their companies this year.
“Rapid cost increases are placing the survival of small companies in jeopardy, and dampening the entrepreneurial spirit so crucial to economic recovery”, said Jonathan Elliott, Managing Director of comparison site that commissioned the survey.
The full article >>> 3 Costs that cripple small businesses | MarketInvoice.