Impact of Cost of Living Crisis on UK SMEs

This report details the effects of the cost of living crisis on small and medium-sized enterprises (SMEs) in the UK. It outlines the economic challenges faced by SMEs, including high inflation and interest rates, and how these factors are forcing businesses to make difficult decisions. The report presents findings from a survey of 1,000 UK SMEs conducted by Censuswide, revealing that while 50% of SMEs feel confident about their resilience, a significant number are concerned about their future. The report highlights that 29% of employers have kept salaries stagnant, leading to a decline in real wages, while 24% have paused recruitment and 16% have laid off employees. Additionally, the report discusses the impact of these financial pressures on employee morale and productivity, with many employees feeling overwhelmed and overworked. The report also addresses the increased risk of cyberattacks as SMEs navigate these economic uncertainties, with 47% of respondents believing they are at greater risk due to various factors, including insider threats and supply chain fraud.