April 10th, 2024, Kineree Shah
In recent times, businesses across Britain have been facing the challenge of rising costs that affect not just how much consumers spend but also the expenses of running a business. YouGov Surveys: Serviced asked 1,007 GB business decision-makers how their companies have adapted to these challenges. The responses were grouped by the size of the business, from microbusinesses with fewer than 10 employees to large businesses with 250 or more employees.
Here's how they're tackling the issue:
Many businesses have chosen to increase their prices to manage higher operational expenses. The tendency to raise prices grows with the size of the business. While 45% of microbusinesses have taken this route, the number rises to 57% for small businesses, 65% for medium businesses, and 59% for large businesses.
Another strategy is diversifying what they offer. Only 19% of microbusinesses and 17% of small businesses have tried this, compared to 21% of medium businesses and 36% of large businesses. It seems the larger the business, the more likely they are to try new things to bring in money.
Reducing operational costs is a common approach across the board, but again, more prevalent among bigger companies. Three in 10 microbusinesses have cut costs (31%), with the percentage increasing through small (42%), medium (49%), and large businesses (58%).
Many businesses have not implemented any strategies to adapt to rising costs. This stance is most common in microbusinesses (33%), with the figure progressively decreasing among small (19%), medium (8%), and large businesses (7%).
Our survey highlights how UK businesses, irrespective of their size, are actively seeking ways to navigate through the economic challenges posed by rising costs. While larger companies have the resources to diversify products or services and cut costs more effectively, smaller businesses are more inclined to either increase prices or, in many cases, make no changes at all.
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Methodology: YouGov Surveys: Serviced provide quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online on 26 February – 4 March 2024, with a nationally representative sample of 1,007 businesses decision makers (aged 18+ years) in Great Britain, using a questionnaire designed by YouGov. Learn more about YouGov Surveys: Serviced.