APA Survey Reveals 28% of Owner Managed Businesses See Growth As Their Main Priority

Only 28% of owner managed businesses see growth as the main priority over the next 12 months while 65% of these businesses are unlikely to make significant capital investment in the same period.  These are two of the key findings of a survey of 512 owner managed businesses launched by the Association of Practising Accountants (APA) today.

Other findings from the APA survey:

• 82% of these businesses expect supply-chain costs to rise over the same period
• 81% expect labour costs to rise
• Only 46% feel in better shape to manage these challenges than 12 months ago
• 83% of respondents rated business support from the outgoing administration as either poor or very poor while only 30% believe an incoming administration will improve things
• Uncertain trading conditions (38%) followed by wage inflation (17%) and labour shortages (14%) were identified as the biggest challenges facing owner managed businesses

Commenting on the APA Surveys findings, APA Chairman Martin Clapson said:

“Owner managed businesses need meaningful help and support from Government.  Our analysis suggests that many have given up hope of this coming.   There is a real opportunity for the incoming Labour Government to reengage with this vital sector of the UK economy provided it can demonstrate it understands the needs of these businesses.

“Government needs to identify a series of short-term, stop gap measures to reduce the immediate challenges facing SMEs including revisiting rises in corporation tax, addressing labour shortages with more flexible migrant policies, incentivising capital investment and being seen to champion the SME sector more broadly.

“There is also a need to take a more realistic view of our future trading relations with Europe recognising that labour shortages coupled with an altogether more challenging export environment pose a real threat to long term growth.

“Above all the Government needs to recognise that uncertainty remains across many sectors of the economy and that businesses want reassurance as well as clear and unambiguous advice and support.  This is about adopting a flexible approach to business policy which recognises the many challenges facing owner managers and which prioritise the sustainable growth of this sector.”

If you have any queries about the APA survey results please do not hesitate to get in contact with our expert family business team.