Biggest threats facing SMEs in 2024

New research by Allianz Commercial has found that inflation continues to be the biggest threat facing small and medium-sized enterprises (SMEs) in 2024.

The recent survey of 500 SMEs revealed the top three threats to businesses are:

1. inflation and the cost of living (61% said they feel under threat)

2. state of the UK economy (51% said they feel under threat)

3. cash flow (31% said they feel under threat).

More than half of SMEs said they feel under threat from the state of the UK economy (51%), an increase of 18% from 33% in the past 12 months. While worries about Brexit have decreased from 25% since last year’s survey* to just 16%, concerns about cashflow have almost doubled from 16%, with respondents now rating it one of the biggest threats (31%).

75% of SMEs surveyed said that have been negatively impacted by the cost of living crisis, up from 71% in 2023.

Allianz’s research also identified the top business challenges facing SMEs in 2024, with the price of energy topping the list:

1. energy bills (37%)

2. competition (36%)

3. late payment / unpaid invoices (28%)

4. supply chain problems (24%)

5. staff (e.g. hiring, retaining) (24%).

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