Building business resilience
Across the UK, many small business owners have faced particularly difficult times over the last five years, between Brexit, a global pandemic and geopolitical forces. The combination of these huge challenges and pressures have played a significant role in the rising cost of living as well as the effect it has had on small businesses. Here we explore some of the ways this is affecting you, and how we can support you and the future of your business.
Small and medium-sized enterprises (SMEs) make up 99.9%1 of the business population in the UK; demonstrating the important role these businesses play in our economy. With rising costs front of mind, the next few months will no doubt bring new challenges for British SMEs. Businesses will need to draw on the same spirit of resilience, innovation and support that has carried them through the last five years.
At Barclays we recognise small businesses to be an integral part of our economy and with the challenges of doing business in the current economic environment, we want to make sure you have all the support, help and guidance you need. Over the coming months, we will be producing a series of content and information covering a number of topics that could be relevant to your business: managing finances, workforce, and supply chain issues. We will also provide you with useful tools and webinars, and access to our health and wellbeing hub.
Access to Finance
Small businesses are unique and come in all shapes are sizes and their needs and challenges vary when it comes to financial options. Being aware of the range of the options available to you is key to any business: who to speak to, where to find borrowing, or how to access different options, are all part of the puzzle, as well as working with your bank and organisations that will help give you the tools you need to meet your growth plans for the future of your business.
We want to make it easier for businesses to understand their options when it comes to their finances, especially in trickier times. For more information and guidance on helping your business in the near future, check out our Business Insights.
Workforce
Small business employers face a delicate balancing act of keeping costs down, maintaining employee performance and offering financial wellbeing. A lot of the uncertainty we are seeing comes from a post-pandemic environment and an unstable economic situation.
Although this is difficult ground to navigate, there are cost-effective solutions to help combat these challenges and ensure the wellbeing of your workforce such as reviewing your benefits package to ensure it’s still relevant to your staff’s needs, embracing hybrid working, providing mental health support at work, and providing financial training and guidance.
Supplier costs
The lifting of Covid-19 restrictions eased the UK economic outlook, helped by people going back to work, increased high street footfall and the reopening of the hospitality industry. However, with higher inflation, prices of goods and services on the rise, and disruption to the supply of goods, business owners are feeling the pinch. Overdue invoices, suppliers unable to supply goods, retailers being overstocked… these are just some of the pressures on small business owners.
Having a clear and proactive plan can help you reduce risks, make quick decisions and help identify opportunities for your business. Some helpful solutions to managing supply chain challenges could be:
- Monitor and track your inventory closely. Just-in-time (JIT) and Lean Methodologies can help cut down on held inventory, helping to reduce storage space and use it in the best possible way for your business.
- Track and forecast sales. A well-constructed supply chain can lead to increased customer sales. Perhaps consider implementing a profit and loss statement template to better understand your sales, expenses, and cash flow. This will help with inventory as well as the overall health of the business.
- Increase meaningful communication with customers. Be open and communicate actively with your customer base.
- Maintain communication and build good relationships with your suppliers. This can help ensure you get the goods you need on time and keep your customers happy.
We are here to help and support you and your business build resilience for the future. Find out how we’re helping our customers navigate these challenging times through our Barclays Business Health Pledge.
1 Department for Business, October 2021. National statistics, Business population estimates for the UK and regions 2021: statistical release. https://www.gov.uk/government/statistics/business-population-estimates-2021/business-population-estimates-for-the-uk-and-regions-2021-statistical-release-html#:~:text=Composition%20of%20the%202021%20business%20population,-The%20UK%20private&text=SMEs%20(small%20and%20medium-
This article is designed to help you with your independent research and business decisions. This page contains link(s) to third party websites and resources that we (Barclays) are not providing or recommending to you. The information contained in this article is correct at the time of publishing. We recommend that you carry out your own independent research before you make any decisions that will impact your business.
Barclays (including its employees, Directors and agents) accepts no responsibility and shall have no liability in contract, tort or otherwise to any person in connection with this content or the use of or reliance on any information or data set out in this content unless it expressly agrees otherwise in writing. It does not constitute an offer to sell or buy any security, investment, financial product or service and does not constitute investment, professional, legal or tax advice, or a recommendation with respect to any securities or financial instruments.
The information, statements and opinions contained on this page are of a general nature only and do not take into account your individual circumstances including any laws, policies, procedures or practices you, or your employer or businesses may have or be subject to. Although the statements of fact on this page have been obtained from and are based upon sources that Barclays believes to be reliable, Barclays does not guarantee their accuracy or completeness.
Business Health Pledge hub
We’re helping businesses build resilience.
Visit the hub to learn about our Business Health Pledge, and access tools and guides to help your business recover and grow.
Additional Support
Support in difficult times
Take a look at our guides for coping with financial difficulty, health challenges, life events and improving your digital skills.
Barclays Money Management hub
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Business Insights from Barclays
We’ve pulled together a range of knowledge and insights for you. From business plans, financial support, marketing and much more.