Rising energy costs and steadily increasing rent bills are the biggest concerns facing the UK’s small businesses, new research reveals.
The Risk Barometer Survey, commissioned by insurance firm Hiscox, asked small and medium-sized businesses in the UK to reveal their top ten business concerns.
The results show that almost four out of five small firms in the UK are concerned about the ever-increasing amount they have to fork out to cover overheads.
Expenditure on business taxation, such as local business rates, VAT and national insurance was revealed to be the second biggest concern troubling small businesses in the UK.
Other high-ranking worries included the effect of the economy on small business, dealing with paperwork and regulation and compliance with UK company law.
Hiscox reports that the sector as a whole is increasingly preoccupied by risk management issues and fears of spurious legal claims amounting from a rising “claims culture.”
Nearly three in five small businesses reported spending more time looking at risk management issues than they did two years ago, while 70% believe they are more likely to be subjected to a frivolous legal claim due to the rise of a ‘no-win, no fee’ legal culture.
Gary Head, professions underwriting director at Hiscox, said: “The survey reveals a small business sector under considerable pressure, whether it be dealing with rising energy costs, fighting their way through business taxation rules or interpreting the myriad government regulations they now face.
“The continued growth in the UK’s compensation culture is very much evident in our findings, which show that a majority of small firms are rightly worried about legal claims, both spurious and real.”
© Crimson Business Ltd. 2006