According to the 2016 Business Census of 1000 business leaders, 45% of food sector businesses reported flat or no growth during their last financial year - the lowest out of all sectors in the UK.
The data was compiled by the business date website Company Check. It asked businesses for their insight, predictions and comment on the state of their company at the start of 2016, as well as reviewing last year's performance. A quarter (26%) said finance was their biggest issue last year and it's still expected to be the biggest challenge in 2016. Access to finance remains especially difficult for many firms.
However, concerns over politics and the economy have all increased in light of increased security concerns and ahead of the EU referendum. A strong Budget today for SMEs will therefore be vital.
Alastair Campbell, co-founder, Company Check, said: “It’s unsurprising that finance remains a top concern, with an increase in reported political uncertainties such as the impending EU referendum and the growing security concerns both impacting on companies’ ability to get hold of the finance they need to support investment.”
Craig Allen, Co-founder, The Change Group, said: “Undoubtedly, the increase to the National Living Wage will have both a positive and negative impact across the whole of the hospitality industry well into the future. Inevitably there is a fear that jobs could be lost due to businesses slimming down their workforce to save money or else they will pass the cost on to the consumer by raising prices – which in turn could put people off visiting, also resulting in potential job losses, creating something of a vicious circle.
“But, it’s not all bad news: The National Living Wage will of course improve the lives of workers and we all know that a happy workforce is a good workforce. It could also improve staff retention for low-skilled jobs and attract more people to consider a career in hospitality due to the higher pay rates.”