According to the Built for Bigger Things report commissioned by Dext, the same number believe today’s economic conditions are even more unstable than during the Covid-19 crisis.
As a result, nearly 40% have paused growth plans, 46% have faced cashflow problems or needed emergency funding and over a quarter (27%) have either cut staff or frozen hiring, respectively.
Meanwhile, 53% say planning for the future is now nearly impossible, the report stated.
Dext CEO, Sabby Gill said: “We’re past resilience. These businesses are stuck in survival mode, and too many are close to giving up. Without urgent support, we risk losing a generation of entrepreneurs and the backbone of the UK economy, not just to economic pressure, but to exhaustion.”
The report also highlights how internal inefficiencies are making things worse.
This comes as many small businesses still rely on outdated tools and poor financial planning, draining time and energy.
The report added that 27% of SMB leaders spend 21 to over 40 hours a month on financial admin, nearly a full working week, with 40% describing admin as “soul-destroying,” 38% saying it takes away energy needed to grow the business and 36% say they’ve lost sight of why they started their company.
“Small businesses are being pushed to the brink by macro pressures and micro inefficiencies,” added Gill. “Without time, headroom or real-time visibility, they can’t lead confidently. Every day this continues, we lose growth potential.”
“We call SMBs the lifeblood of the economy, but many are bleeding time, energy and belief. The challenge now isn’t just survival, it’s protecting the ambition that powers this vital sector,” she concluded.
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