Latest figures show that both consumers and small businesses are feeling a pinch on their budgets, spelling trouble for consumer spending. In this week, inflation rose to its highest level since 2013, and now stands at 2.7 per cent. Wage growth, however, is lagging behind at 2.4 per cent, which indicates that small businesses are likely to see their customers spending less and less over the coming months.
Opting for apprentices
Small, medium and micro enterprises (SMMEs) are leading the way on alternative recruitment practices, as more and more of these businesses are opting to take on apprentices instead of university graduates. A survey commissioned by Sandler Training found that 57 per cent of businesses would rather train an apprentice for an entry-level role, and most small business owners are of the opinion that degree education is in fact less valuable now than it was ten years ago. Despite this, less than a quarter of SMMEs said that they have hired an apprentice recently. Find out how you can take advantage of the apprenticeship levy in our blog.
Call for cyber security
Following the ransomware attack that affected hundreds of thousands of people around the globe last week, the Federation of Small Businesses (FSB) has urged SMMEs to invest in their cyber defences. According to the FSB, a cybercrime incident costs a small business an average of £3,000 to recover from, and can put a business out of action for an average of 2.2 days.
To find out how you can protect yourself from these attacks effectively and cheaply, read our recent blog post.
Supply chain changes
Fears over the future of the UK’s trading relationship with the European Union might be resulting in SMMEs losing contracts or failing to land new business. A survey by the Chartered Institute of Procurement & Supply (CIPS) found that almost half of European managers working with UK suppliers are now seeking out local suppliers instead. As a result, almost two thirds of UK businesses said they have seen their supply chains become more expensive, increasing the cost of business and reducing their profit margins. Our upcoming event on ‘Developing your Brexit People Strategy’ can help your business get better prepared for a turbulent market place.
If you have any questions or would like further information about the range of support on offer in the Building Legacies Programme, please contact Danny on email@example.com or call the office on 020 7537 6480.