A quarter of business owners consider making redundancies by the end of the year, new study shows

According to a survey from Novuna Business Cash Flow, 25% of SME owners anticipate significant restructuring and redundancies will be necessary before the end of 2024.

After last fall’s budget announcement, almost half of businesses in the market reported a decline in product demand or services due to decreased profit. As a response, 1/4th of SME owners predict cost-cutting and redundancies will be necessary to excel moving forward in 2025, Novuna Business Cash Flow research shows.

In terms of the upcoming budget, the survey also points to 47% having low hopes that the government’s fiscal policies will provide a direct impact on their companies.

Head of commercial and strategy at Novuna Business Cash Flow, John Atkinson, adds: “This survey exposes significant concerns among business owners, particularly highlighting that 28% are grappling with cash flow pressures in these challenging economic times”.

Atkinson, and many other businesses are looking to the approaching season as the government’s opportunity to restore faith: “The forthcoming budget presents an invaluable chance for the government to show its commitment to supporting SMEs and, by extension, the broader economy.”