Small Biz Outlook: Not Tipping the Growth Scale
When the big players are already bragging about higher sales and pricier services, the smaller firms are playing it a little more cautious. An eye‑popping survey by Price Bailey shows exactly how.
What the Numbers Say
- Out of 750 Finance Directors surveyed (all running businesses grossing between £10m and £100m), 67% predict a sales boost over the next year.
- Similarly, 63% see a price hike coming.
- But the biggest of them—those with over 500 employees—are the most bullish. Ninety‑six percent expect higher volumes, and 95% forecast pricier goods.
Small‑Scale Skepticism
Now, bring the employee count down to 10‑249 and the optimism slumps to just 57% for volume and 52% for price. The up‑and‑down is almost like riding a subway: big trains get everyone rolling, while the smaller ones keep taking pauses.
Why the Drop?
Price Bailey points the finger at looming legislation: the Employment Rights Bill and looming tax hikes from the new Autumn Statement are big on the minds of small business owners. They’re worried the bills will push their costs even higher.
Quotes from the Top
Chand Chudasama, Partner, Strategic Corporate Finance Team shares: “Small businesses are the backbone of the UK’s economy. Yet tax rises and red tape hit them all the harder. It’s choking their confidence.”
- “The government should think about targeted financial help. We already have VCT, EIS, and SEIS schemes—more promotion could bring in fresh investors.”
- “Beyond money, we need to trim administration and give them better digital and physical tools to thrive.”
NMW Impacts: Who Wins?
- For firms over 500 employees, 91% believe National Minimum Wage changes will benefit them. Only 5% see a downside.
- Between 250‑500 employees, 53% see a benefit and 23% a negative hit.
- For the tiniest firms (10‑249 employees), 42% fear a negative impact, while 38% see a benefit.
The short answer? The bigger the company, the more likely they’ll view wage hikes as a growth lever. The smaller, they’re likely to see it as a cost‑drain.
Bottom Line
While the high‑rollers are dancing forward with optimism, many small businesses are stepping back, holding their breath, and hoping the next tax round or law tweak won’t tip their balance sheet. The real ask? A government that lifts the weight of paperwork and keeps a steady hand on the wheel.
