SMEs adapt financial strategies amid economic pressures

The latest Prospa-commissioned RFI Global research reveals that SMEs are increasingly concerned about economic and regulatory factors (35%), up from 23% a year ago. Similarly, concerns about business demand and cashflow have surged to 27%, a significant increase from 15% in May 2023. 

Key financial challenges include rising supply chain costs (68%), increased labour expenses (62%), and anticipated decreases in turnover (55%) over the next 12 months. Notably, staffing, recruitment, and payroll represent the largest expense for 38% of SMEs, while 36% cite government payments and taxes as a major financial burden.

Response to financial strain

A staggering 51% of SMEs are concerned about accessing the funds they need. In response to these economic pressures, SMEs are adjusting their financial management strategies to maintain their financial health.