Almost 5 per cent of UK small firms worse off through rising costs
Latest press releasesMany small firms are almost 5% worse off financially than a year ago because of the rising cost of running a business, according to the latest report from the Business Inflation Guide (BIG).
This guide is produced by More Th>n Business and developed in conjunction with Warwick Business School. It is a quarterly index that measures a basket of 20 of the most important expenditure items for small businesses. The index has been measuring the health of the small business economy for the past 18 months.
In the UK overall, micro firms - those with fewer than 10 employees - are the worst affected, with costs 3.1 per cent higher than the same time last year. Combined with the VAT increase, this means that they are almost six per cent worse off.
Professor Stephen Roper, Director of the Centre for Small & Medium Sized Enterprises at Warwick Business School, said: "With less than one quarter of small businesses looking to borrow externally, the Government's guarantee scheme to support small business loans does not really help many small firms.
"The VAT rise and cost increases will have a significant impact on cash flow on these self-sufficient firms."
Small firms in the UK have now seen three consecutive quarters of rising costs, and recovery over the past year has been very volatile. Gas and energy prices, for example, have fluctuated considerably. For example, in the last quarter of last year, gas prices sharply reversed the previous quarter's fall, increasing by 17 per cent.
This guide is produced by More Th>n Business and developed in conjunction with Warwick Business School. It is a quarterly index that measures a basket of 20 of the most important expenditure items for small businesses. The index has been measuring the health of the small business economy for the past 18 months.
In the UK overall, micro firms - those with fewer than 10 employees - are the worst affected, with costs 3.1 per cent higher than the same time last year. Combined with the VAT increase, this means that they are almost six per cent worse off.
Professor Stephen Roper, Director of the Centre for Small & Medium Sized Enterprises at Warwick Business School, said: "With less than one quarter of small businesses looking to borrow externally, the Government's guarantee scheme to support small business loans does not really help many small firms.
"The VAT rise and cost increases will have a significant impact on cash flow on these self-sufficient firms."
Small firms in the UK have now seen three consecutive quarters of rising costs, and recovery over the past year has been very volatile. Gas and energy prices, for example, have fluctuated considerably. For example, in the last quarter of last year, gas prices sharply reversed the previous quarter's fall, increasing by 17 per cent.
One of Europe's largest business schools and the largest department of the highly-rated University of Warwick, WBS is fully accredited.
Our teaching is rated excellent and 75 percent of our research is rated at 3* and above, placing us 3rd in the UK.
Over 8,000 students from 130 countries currently study here.
Their interaction with top faculty creates a multicultural learning environment, enhanced by outstanding teaching and study facilities and a top-quality campus.
Our teaching covers the full range of business education, from undergraduate and masters degrees to the Warwick MBA, doctoral research, and executive education.