A new report has highlighted price rises as the key concerns for small-to-medium-sized-enterprises working in the transport and logistics sector, according to a major new survey.
Market research firm Bionic asked 500 business owners to identify the most concerning issues they would face over the coming 12 months and found 81% put financial fears top of their list.
Other major challenges included supply chain and logistical disruptions (58%) and problems with hiring and retaining talent. A massive 77% of business owners struggled with hiring and retention in 2024, with 31% describing it as “very difficult”.
Meanwhile, over half (62%) of small business owners say they have struggled with late invoices or overdue payments in the past year, putting extra strain on their cash flow.
The survey also revealed that 38% of those surveyed had been forced to increase their product prices/rates to improve cash flow in 2024 and 15% said they thought their business would have to cease trading in 2025. Financial pressures (22%), cash flow problems (20%), and increased competition (14%) are the biggest threats to survival.
In total, 66% said they had felt burnt out to some extent when running their business last year.
The increase in employer’s NIC was the biggest issue when it came to governmental policy with 65% of SMEs identifying this as a key concern. A rise in the national living wage is another pressing issue (47%), especially for businesses already struggling to manage payroll expenses.
Net-zero practices also had to take a back seat during 2024, according to 62% of respondents. Another 12% said sustainability had been significantly deprioritised.
More small businesses are exploring AI, the survey found, with 69% planning to introduce AI-driven processes in 2025. But while many see the benefits, some businesses are still concerned. The biggest worry is accuracy (35%), with businesses fearing that AI tools might generate unreliable results.
With cyber threats on the rise, more than half of businesses (96%) increased their cybersecurity spending in 2024 to protect themselves from potential attacks.
Commenting on the findings of the report, Les Roberts – senior content manager at Bionic said: “The new government’s first Budget did not go down well with business owners who have had to overcome tough trading conditions over the last five years.
“Rising costs from things like high energy prices and rent increases are stretching small business owners, but it now costs more to hire and employ staff. In order to survive, business owners might have to both cut jobs and raise prices, neither of which will do much to grow the economy.”
