Nearly half (49%) of small businesses say they have not benefitted from falling inflation this year, according to a new poll commissioned by iwoca — one of Europe’s largest SME lenders.
The research also reveals that the cost of doing business is too high for half (50%) of the UK’s 5.6 million small- and medium-sized companies.
Rising costs have hit the vast majority of small businesses, with just 15% of SMEs saying that they have not experienced cost increases over the last six months.
While households brace for a 9% rise in Ofgem’s energy price cap this winter, small businesses are already feeling the heat. According to iwoca’s polling, nearly a third (28%) of companies cite soaring energy bills as their biggest cost increase, while a quarter (23%) point to business supplies being more expensive.
With costs going up, nearly half (45%) of small businesses predict that they will have to raise their prices over the next six months.