UK SMEs Seek Cost-Saving Measures in Response to Economic Pressures

Our finance partner provides the latest research on what SME's are doing to combat the cost of living crisis..

Economic pressures are taking a toll on UK small and medium-sized enterprises (SMEs), with more than two-thirds of businesses seeking ways to cut back on expenses, according to a recent study by Forbes Advisor. The research surveyed senior decision-makers across a range of SMEs and found that 82% of respondents had been negatively impacted by the cost-of-living crisis. 

While many firms have been making efforts to reduce costs by switching providers or renegotiating agreements, the study found that two in five SMEs failed to make any savings. The hardest cost to save money on was rent for business premises, with almost one in five businesses unsuccessfully attempting to negotiate existing deals or move locations. 

In more extreme cases, some SMEs have been forced to cancel staff parties and events to ensure financial stability. As inflationary price rises continue to impact businesses, the cost of raw materials and stock, business insurance, and office supplies has increased sharply. 

Despite the majority of businesses seeking out cost-saving measures, the study found that three in ten SMEs are yet to explore money-saving methods. Financial experts do note that simply switching suppliers or renegotiating current agreements could result in significant savings for many businesses.  

On the bright side, some SMEs have successfully cut costs, with almost a third of businesses renegotiating their advertising and marketing agreements to get better deals. Additionally, switching providers has led to more than half of businesses making savings on medical insurance and conference call subscriptions. 

In response to the challenging economic situation faced by UK SMEs, many have turned to business finance specialists for assistance. They can offer guidance and support in identifying cost-saving measures and navigating financial obstacles. By working with finance specialists, SMEs can develop targeted strategies for improving their financial resilience and weathering the current economic storm. With expert help at the ready, businesses can take proactive steps to secure their future and emerge from the current crisis, stronger and more resilient than ever before. 

Please get in touch for a free business review to find out if asset finance, invoice finance or business finance is for you from our partner.