It captures the voices of family-run, privately owned and owner-managed businesses – the backbone of the UK economy – offering vital insights into the challenges, opportunities and aspirations of this crucial sector.
“These businesses are not just economic contributors; they are woven into the fabric of our communities,” says Paul Dickson, Chief Executive and Managing Partner at Armstrong Watson. “This year’s survey highlights the resilience and adaptability of business owners who continue to innovate, invest and plan for the future – even in the face of rising costs, recruitment challenges and economic uncertainty.”
Among the key findings, recruitment remains a major challenge, with 78% of businesses reporting difficulty hiring new talent, and more than half citing a lack of skilled candidates among the main reasons for this struggle. In response, businesses are adapting by introducing flexible working arrangements and enhancing benefits packages, though fewer are implementing formal incentive schemes or increasing their advertising budget.
Added to this is the widespread impact of increased employment costs resulting from rises in Employer National Insurance and National Minimum Wage rates, which have disproportionately affected businesses in sectors such as hospitality, retail, and care, where more employees are on lower wages. The impact of these measures has been further exacerbated by pressure to increase pay across the board.
With increasing employment costs, it comes as no surprise that 47% of business owners state that an ‘increase in costs impacting business viability’ is the main challenge to their business growth in the next three years, followed by ‘changing regulations’ at 43%. Despite cost challenges, however, only 26% state that they foresee ‘having sufficient funds’ as an obstacle to business growth.
The majority of survey respondents have adopted digital technology and automation, although 30% still rely primarily on manual processes, rising to nearly 40% in the agricultural and property sectors. When it comes to security regarding technology, however, many are complacent, with just under 40% ‘not concerned’ about the threat of a cyber attack on their business.
Growth plans, for many, are either something business owners have little time to think about or remain in the mind of the business owner, with only 18% admitting to having ‘written their plans down and communicated them to stakeholders.’
Paul said: “Having a strategic plan not only guides long-term goals but also drives more effective short-term planning and decision-making. We are committed to supporting businesses through every stage of their journey – from growth to succession.”
“We’d like to thank each and every business owner who took the time to share their experiences and insights. The survey is a powerful resource, reflecting the realities faced by family, privately owned and owner-managed businesses across the UK. It’s vital that the voices of business owners are heard, not just by businesses like ours but also by stakeholders, policy makers, industry leaders and across communities.”
The full report is available to download now. It offers vital insights into the challenges, opportunities, and aspirations of this crucial sector, with analysis from our range of experts.
