Small businesses are forecasting increases in profits and revenue in 2023 despite the impending threat of a recession, according to research from HSBC UK1.
One in three (38%) business owners expect to see at least a 10% jump in profits this year, with professional services firms leading the way (67%).
Just under half (47%) of small business owners predict revenue to increase, with a third of those expecting it to grow by at least 20%.
Businesses acknowledged the impact of financial threats such as rising inflation (41%), followed by the decline in consumer spend (38%), rising energy costs (36%), wage inflation (22%) and cash flow management issues (19%).
However, over two thirds (76% ) of business owners said they had solutions in place to tackle these challenges. Nearly half (45%) plan to increase prices and one in five (23%) were reducing their energy consumption.
As a result, nearly two thirds (65%) said they were confident their business will survive.
Peter McIntyre, Head of Business Banking at HSBC UK, said: “Despite the challenges of a turbulent economic climate in 2022, small businesses are displaying strong signs of resilience and growth.
“HSBC UK remains committed to supporting customers with their growth plans as well as helping them to mitigate financial risk. A big part of that is providing the tools and information to help customers improve cash flow management, tackle supply chain issues and manage their overheads such as energy costs.”
HSBC UK offers a range of financial solutions to customers impacted by the rising cost of living, including:
HSBC UK’s research also found that one in four (26%) small business owners are reporting that cost of living pressures are causing a decline in their wellbeing. HSBC UK’s early warning signs team have been proactively contacting customers that could be entering into financial difficulty to discuss how they can help. So far, the majority of affected customers (68%) have avoided defaulting on payments for at least six months after being contacted by the bank.
For more information visit: Financial Worries & Wellbeing (hsbc.uk)
Hannah Langston, Senior Media Relations Manager, Commecial Banking
07384 792 248, email@example.com
Note to editors:
1Survey conducted by YouGov on behalf of HSBC UK. Sample size was 604 owners of businesses with up to £5m turnover. Fieldwork was undertaken between 26 October - 7 November 2022. The survey was carried out online.
Cost of living support available to all HSBC UK customers:
About HSBC UK
HSBC UK serves over 14.85 million customers across the UK, supported by 23,500 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates. HSBC UK Bank plc is a wholly owned subsidiary of HSBC Holdings plc.
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 63 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of $2,992bn at 30 September 2022, HSBC is one of the world’s largest banking and financial services organisations.