In news this week, we look at how the increased National Living Wage may impact small businesses. We also cover news that suggests smaller businesses see the government as favouring large companies, and it’s revealed that Marketing is seen as a weak point across many small firms.
Feature of the Week
The new, national living wage which will be higher for over 25s is expected to have a significant impact on SME operations.
Although welcomed by many workers, some business owners are worried, saying the extra costs may mean they might not be able to afford as many workers.
From an analysis of over 4,500 small and medium companies, it was found that that eligible employees will, on average, earn over £950 more each year.
SMEs are concerned that government favours big companies | Smallbusiness.co.uk
According to a recent study, three quarters of small businesses believe that he government disproportionately looks after the needs of big business.
This is despite Chancellor George Osborne’s attempts to redress the balance between big business and smaller companies with several major initiatives announced in his recent Budget.
SMEs unprepared for data breaches | Smallbusiness.co.uk
It has once again been found that small businesses are unprepared for data breaches and cyber threats.
As many as half of all UK SMEs have no plan in place to deal with a data breach and are drastically underestimating the cost of managing one which could seriously risk the survival of many if a breach were to hit.
Government figures indicate that a data breach costs SMEs an average of £310,000, yet the SMEs surveyed estimated the cost to be just £179,990; a shortfall of more than £130,000.
UK SME confidence plummets | Reuters
A survey has shown that confidence amongst UK SMEs has dropped sharply, with Northern Irish and Scottish businesses the least confident in the face of a global economic slowdown and public-sector austerity.
The Federation of Small Businesses (FSB) first-quarter survey showed the first decline in job creation by small firms nationwide since mid-2013.
Marketing the weakest area of SME businesses | Smallbusiness.co.uk
Small companies are found to be struggling with many aspects of marketing, from PPC and SEO to telesales and social media.
Some 23 per cent of small business owners say they are finding it ‘almost impossible’ to find a marketing director to cover all skills.