What are the top five concerns for SMEs in 2023?

A third (32%) of UK finance brokers say that small businesses were most worried about increased business running costs as they entered 2023, new research from iwoca shows.

Also featured in the top concerns list were a recession (cited by 12% of commercial brokers), having to close their business (11%), higher interest rates (11%), access to finance (9%), and the ability to hire or retain staff (7%).

Whilst inflation is set to fall over the course of the year, SME owners may see other costs rise as corporation tax increases to 25%.

Colin Goldstein, commercial growth director at iwoca, said: “Small and medium-sized businesses across the country are searching for financial support as they endure uncertainty.

"Whilst forecasts tell a more positive than expected story for the UK economy this year, the reality on the ground for many SMEs will still be difficult, characterised by high costs and reduced consumer spending. Access to finance during this period becomes even more vital to keep them on track.”