Small businesses face biggest growth drop in five years

More than a third of small business owners said 2024 has been the slowest year for business they have seen in the past five years, with smaller businesses struggling the most.

According to VistaPrint data, businesses with fewer than 10 employees were the most challenged, with many reporting that lack of access to financing was one of the main factors preventing expansion.

In fact, one-third of all small business owners said access to financing was one of the biggest challenges they faced so far this year.

While the cost of materials was also highlighted as a barrier to growth by 39 percent, 72 percent of business owners said cost of living was a top challenge.

VistaPrint’s research coincides with the launch of its ‘Realising the Remarkable’ funding programme, offering 20 grants of £3,000 to businesses with fewer than ten employees.

VistaPrint said only one percent of small businesses receive grants to support their growth, and three-quarters have no choice but to self-fund their businesses.

About 10 percent of homeowners rely on their family for financial support, and 30 percent of younger homeowners rely on their parents.

We previously reported that business owners are asking their families for an average of £6,4000 to help with costs.

Katie Eldred, VistaPrint UK Manager, said: ‘Small business owners are the backbone of the UK economy.

‘With limited access to external finance seen as a key barrier to growth, our grant programme with Enterprise Nation is designed to provide small business owners with the financial support and expert guidance they need to unlock their growth potential and demonstrate their incredible value to our country.

‘We encourage small business owners across the country to apply and make their extraordinary project a reality.’

Scholarship winners will also receive a number of benefits from VistaPrint, including a subscription to its graphic design software.

Despite recent hardships, 56 percent of small business owners said they would still encourage friends and family to start a business, rising to 83 percent among Gen Z entrepreneurs.

Some 66 percent said their enthusiasm for running their own company is due to the work-life balance, while 29 percent said it allows them to pursue their passion.

Emma Jones, founder of small business support platform Enterprise Nation, said: “Small businesses have faced a number of challenges this year, but what this research shows is that they are staying strong and remain wonderfully optimistic about the future.”