British business owners reveal what they believe are biggest threats to UK firms | Personal Finance | Finance

More than half of British business owners see high interest rates as a threat to their business, new research has found.

New research from Charles Stanley has found that 54 percent of business owners think the latest recession was an opportunity for entrepreneurs in the UK, and 51 percent think British entrepreneurship is about to boom.

Of the 500 British business owners surveyed, 64 percent started their own business as an entrepreneur, while 20 percent inherited a family business – the rest came into the ownership through other routes.

With the UK general election looming, well over two fifths (45 percent) of business owners think that a change of UK Government is an opportunity for their business.

The survey found that 63 percent of business owners see artificial intelligence (AI) as an opportunity for their firm, while 17 percent consider it a threat.

Other areas where a sense of opportunity significantly outweighs being a possible threat include increased diversity in the workforce (65 percent), hybrid working (56 percent), and falling inflation (53 percent).

The impact of an ageing workforce was more mixed, with 32 percent of business owners considering it an opportunity to their business, but 30 percent considering it a threat.

High interest rates are considered the most threatening, with 53 percent feeling threatened compared to just 29 percent who think of it as an opportunity.

With the upcoming general election and potential policy changes in mind, more than half of business owners (53 percent) said that they think an increased minimum wage would have a positive impact on their business, and 46 percent would be well impacted by a reduced lobbying and public affairs culture.

However, 19 percent and 12 percent think the impact would be negative, respectively.

Harry Bell, Director of Financial Planning at Charles Stanley, comments: “As we hurtle towards the General Election, all eyes – both personal and professional – are on political parties and their policy proposals.

“Regardless of who holds the keys to Downing Street on the 5th July, we are entering into a period of change. Thankfully, British entrepreneurs are ready for the challenge, and are largely optimistic about the road ahead.

“Entrepreneurs and owners are the backbone of British business, and will be instrumental in the country’s plan for growth. With business finances so closely tied to personal wellbeing and wealth, it’s critical that those owners are supported.

“With solid financial planning and a comprehensive wealth management strategy, they will be freed up to focus their efforts on steering their firm through waters that – whilst choppy – may be full of treasure.”