Confidence in owner managed SMEs increases

In December 2023 accountancy firm, Moore UK, surveyed 500 leaders of owner managed businesses (OMBs) with less than 250 employees. The goal of this study was to analyse the challenges businesses are facing and understand the outlook for these organisations going forward. 

The resulting report, ‘The Owner Managed Business view in 2024’, found that business confidence has reached the highest level it has been since the report was first conducted in 2021.  

80% of owner managed businesses are highly or fairly confident about the outlook for the year ahead. This is further enforced by 88% of leaders feeling optimistic that they’ll hit their revenue target in 2024 and 80% believing that they will meet their profit target. 

One way SMEs appear to be reaching for targets is through hiring. 40% of SMEs have increased headcount since October and 49% intend to grow headcount in the coming months.  

Despite this confidence, the business leaders surveyed were conscious of the challenges that 2024 will provide. Rising interest rates are a significant concern with 47% commenting that it would be an issue to face this year.  

Additional concerns included business costs such as energy and fuel (37%), adopting and implementing new technology (35%), and inflation (32%).  

Maureen Penfold, Chair of Moore UK, commented on the findings: “There is a lot more optimistic outlook than in previous reports, OMBs are exercising prudent restraint in the aftermath of COVID-19, prioritising stability over rapid growth in their strategic approach.  

“While achieving profitability targets in 2024 appears promising, OMBs will need to be proactive in addressing key concerns, including cash flow and investment risks, to ensure current positivity is realised over the coming year.” 

While small business leaders are confident that they can reach their targets in the coming year, having a robust plan that not only accommodates current challenges but unforeseen complications is critical. 

Taking a step back from the business to create a strategic growth plan is a proactive way to ensure that the right technology is adopted, the correct hires are made, and most importantly the year ahead is a success. It’s also a good way to keep yourself accountable for delivering on your plan.  

This is why the Help to Grow: Management Course focuses from the first very module on getting business leaders to build a strategic plan, supported by the advice of business experts and mentors. 

While the results of the survey are undoubtedly a positive sign for SMEs, underpinning confidence with a robust plan will be the surest way to find a path to success.