Businesses on the Brink: 500 Owners Weigh In on Crunchy Times
Our fresh survey of 500 UK entrepreneurs who run firms with a turnover of £5 million or more has flashed a warning light: roughly one out of every three businesses is bracing itself for a wave of job cuts next year.
Key Numbers to Keep in Mind
- 31% say they’ll have to reduce staff in the coming 12 months.
- 30% foresee that they might miss out on debt repayments in the next year.
Why the Bad Mood?
The research was carried out by Evelyn Partners just before the Chancellor, Rachel Reeves, dropped her first Budget. The government’s move to boost the minimum wage and swelled the National Insurance bill, coupled with stricter employee‑rights legislation, has added fresh pressure on business cost structures.
Claire Burden, Head of Advisory Consulting at Evelyn Partners, summed it up: “Inflation over the last few years is putting a hard punch on businesses. Many can’t shift all their cost hikes onto customers, so a few companies are fighting for survival. The cost‑of‑living squeeze is making consumers tighten their wallets.
“Even before the Budget’s hit, the heat was on. It’s unnerving how many owners are paper‑dreading to let employees go. Cash cushions are drying up, so defaults on debts are a real risk. And industries that lean heavily on labour—think hospitality—will feel the burn from higher wages the hard way.”
What’s Fuelling the Fear?
Businesses flagged three main culprits that could hurt their bottom line:
- Consumer demand falling due to the cost‑of‑living crunch (31%).
- Higher taxes (26%).
- Rising raw‑material costs (23%).
Boston Fingers on the Problem
The overarching message from the study? Owners are feeling the squeeze ahead of the Budget’s “growth charges.” They’ve got to sharpen their operational playbook, play the numbers game wisely, and maybe cut back on “nice‑to‑have” spends to keep the ship afloat.
So, if you’re an entrepreneur, breathe easy. Keep a tight eye on your forecasts, lean into lean startups, and keep the morale high—just remember that a bit of humor can make the hard decisions a touch more bearable.
