Economic climate and legislation revealed as biggest issues facing businesses

05-Aug-2019

  • Over half of business owners prioritise growth as part of their business strategy with only 12% prioritising cost management 

  • ‘Wrong business model’ voted top reason for failure for entrepreneurs with growth seen as the biggest priority

  • Legislation and economic climate are the biggest issues facing companies across 8 major sectors according to survey  

The startup world is a fiercely competitive one, with companies across sectors opening and closing at a rapid rate. Safestore have carried out research to find the biggest concerns for biggest owners, their most fundamental goals, and what they believe to be the top reasons for a business failing. 

Biggest Business Issues 

In every sector, business owners are faced with a number of problems to solve every day of the week. We’ve looked at 8 major sectors to find what matters most. 

  • Legislation - Of all the metrics studied, legislation was the biggest concern on average. 30% of agricultural companies place it as a key concern, with 1 in 5 owners of transport, real estate and business SME’s viewing it as a key issue.       

  • Finance - 16% of manufacturing businesses see cash flow as a large concern, more than any other sector. The same sector also ranks highest for worries over ‘access to finance’ with 1 in 10 stating it as a prominent issue.

  • The economy - Only legislation is a more concerning factor for businesses than the current state of the economy, affecting 20% of transport and storage businesses. 

Goals vs. Mistakes

By taking a look at existing survey data, Safestore have been able to highlight both the primary objectives for a business owner and the most common reasons for failure. Some of the highlights from the research can be found below.  

Objectives

  • Aiming High - Growth is unsurprisingly one of the most important considerations for over half business owners outranking all other key goals

  • Tech & Structure - Nearly a third of business owners list their primary objectives to be related to IT or to the development of their companies structure   

  • Clear Objectives - Less than 1 in 10 business owners place efficiency and innovation at the forefront of their business strategy, prioritising more practical goals such as workforce and finance. 

Failures 

  • No Idea - The highest proportion of business owners (35%) see the lack of a business model as the reason for failure 

  • Money Talks - Over 1 in 5 of surveyed entrepreneurs claim that running out of cash was the reason for their ventures fall down 

  • Hot Competition - 11% of those surveyed believed that ‘more able competitors’ were to blame for their companies’ demise, which is notable when a lower proportion value innovation as part of their business model. 

Below is a more detailed breakdown of the survey results for goals and failures across business owners.