Most SMEs say the last few years have been their most challenging ever – but built-in resilience will see them through.
The response to problems thrown up by the pandemic, geopolitical issues and economic uncertainty is highlighted in a new report by Funding Circle.
Research by the UK’s largest small business lending platform, in partnership with insights consultancy Savanta, shows that bouncebackability – together with prioritising mental wellbeing – is a key factor in countering the headwinds.
More than three in five (63 per cent) UK SMEs say this period has been the most difficult in their history with almost two thirds (64 per cent) saying it’s been the most stressful.
However, business owners continue to have a resilient mindset and three quarters (74 per cent) of small business leaders would still recommend running a small business to others.
Determination is a leading characteristic of small business leaders as almost three quarters (74 per cent) say they tend to bounce back quickly after difficult times, and three quarters (75 per cent) are determined they will always find a way for their business to survive in the face of global challenges.
Business resilience was measured by the researchers against a range of financial, operational and personal metrics.
Looking to the future, over half (54 per cent) of businesses are positive about their growth prospects in 2023 – but this is six times higher for high resilience businesses (84 per cent versus 13 per cent).
The data also pinpoints the link between financial success and a focus on health and wellbeing of business leaders and staff.
Twelve per cent of highly-resilient businesses are making ‘improving staff wellbeing’ their top priority over the forthcoming year, and 35 per cent place it in their top three, in comparison to just five per cent and 22 per cent respectively amongst low resilience businesses.
Taking time out and having screen-free time had the most meaningful impact on mental health for SMEs, with therapy sessions popular among younger leaders.
Alexander Allen, UK Managing Director at Funding Circle, said, “From working with small businesses for more than decade, we have seen first-hand how resilient they are, and we are constantly inspired by their agility and determination through challenging times.
“This research demonstrates how important building resilience and focusing on wellbeing is for SMEs to thrive, and we hope these insights encourage small business leaders to focus on their own and their staff’s wellbeing, enabling them to develop resilience in their business and go from strength to strength.”
