Understanding the Challenges and Opportunities for Small Businesses in 2024
Small businesses form the backbone of the economy, yet they face persistent hurdles in sales, costs, and engagement with Local Authorities. Our 2024 survey of over 4,000 businesses sheds light on these challenges and explores potential solutions to support the growth of this vital sector.
Key Challenges for Small Businesses
The survey reveals that 78% of businesses struggle with generating enough sales, and 64% are burdened by rising costs. These financial pressures are compounded by inadequate pricing strategies and challenges in financing expansion, with many businesses unable to increase prices enough to offset inflation. Additionally, issues such as lengthy payment terms and limited access to capital further hinder growth.
Customer acquisition and retention remain critical issues. Over 60% of respondents expressed a desire for a larger customer base, while 37% struggle to identify potential clients. Marketing inefficiencies, such as unclear strategies and low conversion rates, were also cited as significant obstacles.
Limited Engagement with Local Authorities
Despite their potential as a support resource, Local Authorities are underutilised. A striking 80% of businesses do not view Local Authorities as a viable source of business support. This disengagement underscores the need for Local Governments to reframe their offerings and improve accessibility.
What Businesses Want
The survey highlights a strong demand for tailored support. Approximately 79% of respondents expressed a desire for one-on-one mentoring, while 63% sought greater access to business opportunities. There is also a growing interest in flexible event formats, with businesses favouring online workshops and hybrid events.
In terms of grants, businesses report difficulties in finding relevant programmes and navigating complex application processes. Many feel that the effort required often outweighs the benefits.
Opportunities for Local Authorities
The report outlines actionable strategies for Local Authorities to address these challenges:
- Rebranding Support Services: Creating non-governmental portals and collaborating with influencers to improve perceptions of local authority support.
- Dynamic Programming: Offering hybrid events, networking opportunities, and mentoring sessions to foster stronger engagement.
- Grant Accessibility: Simplifying application processes and providing training to help businesses craft compelling applications.
- Technology and Innovation Support: Focusing on areas like AI and sustainable technologies to align with evolving business needs.
Looking Ahead
To bridge the gap between small businesses and Local Authorities, fostering trust and demonstrating tangible value are critical. By addressing key pain points and tailoring support to specific needs, local governments can empower businesses to overcome challenges and thrive in an increasingly competitive landscape.
For small businesses, the survey serves as a reminder to leverage available resources, adapt to market dynamics, and invest in building stronger networks and capabilities.
To download a copy of the survey click here
