UK Small Businesses Forced to Re-Mortgage in Order to Keep Afloat
Majority of small firms say they have never received financial support from the government and a fifth are worried about paying staff
The government may be failing the UK’s small businesses with 60% having to had to re-mortgage or use personal savings in order to keep their business afloat.
According to new research by Sage, 84% of small and medium companies have never received any financial or other type of support.
The research also found that small business owners are “forced” to work overtime in order to keep their firm running. 26% said they work over 50 hours a week while 56% admitted that they worked weekends and the same proportion said they failed to take their holiday entitlement last year.
While 65% of British entrepreneurs said that they planned on hiring up to five employees in the next two years to help manage the workload, one in five said they worried about being able to pay staff.
The survey also asked small business owners what support they would like to get from the government in order to grow. Reduced tax and business rates came out top at 57%; followed by reduced red tape (56%), controlled energy/utility costs (31%) and measures to tackle late payments (12%).
Brendan Flattery, president for Sage Europe, said:
“Small and medium businesses are the engine of our economy. Their leaders are true heroes, willing to make a great personal sacrifice and take significant risks in the name of growth and job creation.
“As a country we owe them a debt of gratitude, and it is the responsibility of our government to listen to their demands to reduce the burden of business rates and to also cut business bureaucracy. It is imperative the chancellor’s review of this outdated tax brings the reform so desperately needed. Only then can UK businesses finally flourish.”