Fullscreen Menu - Background

Subscribe to SME News Search for an article Our amazing team

Ground Floor, Suites B-D, The Maltsters,
1-2 Wetmore Road, Burton upon Trent
Staffordshire, DE14 1LS

Background
Posted 6th February 2018

Currency weakness and skills shortage see SME confidence in the economy plummet to three-year low

The latest Zurich SME Risk Index reveals that concern amongst small and medium sized enterprises (SMEs) regarding the current economic climate is at a three year high.

Mouse Scroll AnimationScroll to keep reading
Fixed Badge - Right
currency weakness and skills shortage see sme confidence in the economy plummet to three-year low.


Currency weakness and skills shortage see SME confidence in the economy plummet to three-year low
Image

The latest Zurich SME Risk Index reveals that concern amongst small and medium sized enterprises (SMEs) regarding the current economic climate is at a three year high.  The index now sits at 56.38, indicating almost a 2% rise in perceived risk since Q1 2016 (55.43), and more than 3% higher than in October 2016 (54.55).

Such lack in confidence regarding the UK’s economy is equally reflected in SMEs attitudes towards economic growth, which presently sits at a four year low. Currently, just two in five (40%) businesses are confident that the UK economic situation will improve over the next 12 months.

The concern regarding the UK’s economic climate is similarly reflected in results regarding SMEs attitudes towards the international trade environment, with concern regarding overseas competition and currency rate fluctuations at its highest in four years at 45.49.

Equally, workforce challenges, namely the availability of skills and talent, is also an increasing concern for smaller businesses. Two in five (40%) SMEs now see workforce challenges as a major concern for their business; a rise of 8 per cent since October 2016, indicating that political issues are a major influence on the current attitudes of business owners in the UK.

Paul Tombs, Head of SME Proposition at Zurich, comments:

“Uncertainty regarding the role that the UK will play in the international markets following Brexit has clearly rocked the confidence of many business owners, and initial Brexit horse-trading has done little to quell concerns.  

“Resolution around movement of skilled workers and economic stability which can help address issues around currency fluctuation and foreign competition must be right at the top of the government’s agenda. Smaller businesses are the lifeblood of the UK economy right now, but we can’t expect to see increasing investment for growth without some form of resolution.” 

Categories: Finance, News


You might also like...
7 Reasons to Hire a BI Implementation PartnerBusiness Advice25th April 20237 Reasons to Hire a BI Implementation Partner

Today, more and more companies are trying to incorporate BI tools in their day-to-day workflows, and it’s no wonder why. Using BI systems integrated with data warehouses and business software like CRM and ERP, companies of all sizes can accurately identify b

Why the number of workers side hustling in the UK is increasingNews5th September 2019Why the number of workers side hustling in the UK is increasing

Having one or more jobs these days is becoming more and more popular, with a whopping fifth of workers in the UK considering the opportunity to side hustle, predominantly the millennials. But, it’s not quite as straight forward as picking what you want to wo

SME News Media Pack

Every quarter we offer a new issue of SME News which is published on our website, shared to our social media following and circulated to in excess of 78,000 individuals from various sectors across the UK SME marketplace.

  • TickExpand your reach.
  • TickGrow your enterprise.
  • TickSecure new clients.
View Media Pack
Media Pack - Bottom Slant Gradient
we are sme.
Arrow