Business owners urged to not avoid making tough decisions in 2023

Start-ups and small and medium business owners have been urged not to bury their heads in the sand in 2023 when tackling difficult decisions.

Craig Humphrey, Managing Director of the CWLEP Growth Hub, outlines in the latest Coventry and Warwickshire Local Enterprise Partnership (CWLEP) Growth Hub SmartRegion report that the biggest challenge for many businesses will be to continue surviving in a tough economic climate.

The report contains findings from the Growth Hub’s business engagements as well as from CWLEP, Warwickshire County Council, Coventry City Council, and other organisations.

He said: “The business community of Coventry and Warwickshire will have watched the Autumn Statement with a great deal of interest.

“We know that confidence across the economy is fragile, and work still needs to be done to remove barriers to future growth.

“Throughout the pandemic and the recovery phase, business support in Coventry and Warwickshire rallied together to ensure that start-ups and existing businesses within our region have the support they need from the Growth Hub, CWRT, the Coventry and Warwickshire Chamber of Commerce, FSB, Warwickshire County Council and Coventry City Council as well as the District and Borough Councils.

“If we build on what we know works to create the long-term conditions for sustainable interventions deployed at a local level and connect our businesses to the talent, finance, and markets they require, then Coventry and Warwickshire will remain a great place to do business.”

Sheridan Sulskis, Chief Executive at Coventry & Warwickshire Reinvestment Trust (CWRT) said there were positives for business owners in the Autumn Statement in the shape of business rates, removal of tariffs on certain products, thresholds rising for the Seed Enterprise Investment Scheme, creative industry relief and a first-year allowance for electric vehicle charge points.

But looking ahead to 2023, Sheridan believes if new measures put people off wanting to become self-employed, starting up their own business, or result in the demise of existing businesses, then it will lead to dramatic negative economic and social impacts.

She said: “The biggest challenge that many businesses will continue to face into next year will be survival, and what that may look like.

“I can see businesses having to make some tough decisions about how they operate, what services and products they deliver and what investment they can make into their staff and growth, to ensure they balance the books.

“My biggest piece of advice to these start-ups and businesses is to reach out for support because there is a variety of different solutions, programmes, and contacts that can help them.

“I would urge start-ups and SMEs not to bury their heads in the sand when faced with these levels of uncertainty and difficulty but reach out for support.”