Two-thirds of owners of small businesses in Britain are optimistic about growth in 2022 despite setbacks such as the Covid-19 pandemic, according to new research.
Half of small businesses have reported significant financial setbacks over the past two years, with 54% having to introduce new emergency revenue streams to survive the winter months after the Omicron variant and supply chain troubles.
Over the past two years, 49% of respondents said they had tapped into government grants to keep their businesses stable.
But, according to a report from Small Business Britain and TSB Bank, 86% of entrepreneurs are fighting back and believe their business will survive this year, despite half of them admitting financial stability has taken a hit.
It found that 66% were optimistic that their businesses would grow in 2022 despite the continuing impact of Covid-19, global supply chain problems and Brexit.
Small Business Britain, which champions the UK’s six million small businesses, has launched an eight-step plan to help businesses rebuild and combat challenges, which is available to download for free.
Michelle Ovens, founder of Small Business Britain, said: “The last two years have brought a rollercoaster of fortunes for small businesses. Each time it seems a corner has been turned, another hurdle has arisen.
“It is incredible how small businesses have used their entrepreneurial instincts to dig deep and keep going. But keep going they must!
“With the right mindset and the help of support networks, innovations like technology and new products and services, small businesses can make it through this crisis and be well positioned for recovery.”
The guide includes embracing a growth mindset, with an openness to adapt, embrace change, and try new things to overcome crisis – something that has led half of small businesses to adopt new innovation, technology and skills to get through.
Small Business Britain is also recommending that businesses get help from others through networking and taking advice from mentors to gain inspiration and solve problems, while also prioritising their staff and customers to gain a greater insight into where they can improve.
Adopting new technologies to connect to a digital audience and build skills can also increase revenue and boost productivity, while flexible businesses that are prepared for any situation with back-up plans in place are more likely to survive an unpredictable economy.
Small Business Britain is also encouraging businesses to invest in core areas for future growth where possible, and to make sure mental health remains a priority for business owners.
Ovens added: “We hope that the small firms out there struggling – and there are many still feeling very vulnerable – can use the practical advice in this guide as a roadmap to find a way back to growth.
“However, there is of course a limit to what small businesses can do. There is still a need for continued support – from the government, bigger businesses, and the public. And it’s vital that this support is inclusive, so it reaches everyone across the small business community.”
Adeel Hyder, business banking director at TSB Bank, added: “Despite a thoroughly testing two years, British businesses are bouncing back with renewed optimism in achieving stability and growth. But we know they face ongoing challenges so I hope the Small Business Britain report helps by setting out a clear roadmap for businesses to rebuild and grow.”
