More than 80% of small business owners admit to being scared by big contract wins, fearing affordability and resourcing, a Censuswide poll commissioned by Monspire has found.
The study highlights a confidence problem among the UK’s small business community, with cashflow ranking as the number one concern for company bosses, followed by finding new business, keeping new business and funding.
Ben Gillen, Co-Founder of Monspire, said: “Even to consider venturing out on your own demonstrates a drive and determination that rightly positions small businesses as the backbone of the UK economy. But the Covid-19 pandemic and cost-of-living crisis have demonstrated a lack of confidence, particularly when it comes to managing finances. Small business owners must feel empowered if they are to grow and succeed – and that starts with getting a handle on their finances.”
The study found that more than two thirds of entrepreneurs believe managing day-to-day finances ‘completely distracts’ them from running the company, while 82% said having a clearer picture of cashflow forecasts would cause them less stress.
Only a third of business owners polled believe they have a complete view of their financial incomings and outgoings for the next 12 months. In response, almost half have used a bank loan to fund their business, a third have relied on friends and family while a quarter have used invoice financing. One in five have put their own money in as a director’s loan to pay for ongoing activities.
Gillen added: “Most owners don’t go into business to spend their days looking at numbers on a spreadsheet. They do it to fulfil a passion, or to solve problems. Without a crystal ball to see into the future, it is clear that owners are intimidated by big contract wins, which should in fact be a cause for huge celebration.”