It wasn’t easy to run a small company in 2024. The UK business community had a difficult year in 2024, with rising costs, difficulties hiring, and the squeeze on consumer spending. Some small business owners have even used their savings to survive, from price increases to cost-cutting wherever possible.
What can we expect in 2025? Bionic, the business comparison experts in the UK, surveyed 500 owners of small businesses to find out what they thought the biggest challenges were in 2024. They also asked them about the challenges they anticipate in the coming 12 months.
Take a look at how different businesses in various sectors are coping with hiring and retaining staff for 2024.
Industry | How difficult is it for your company to hire and retain talent in 2024? |
Construction | 8% Extremely hard, 25% Very tough, 53% Moderately Hard, 12% Not difficult at all, 2% I do not know |
Education & Training | It’s not difficult at all, but it is difficult for some people. |
Finance & Insurance | N/A Extremely hard (No response), 39% Very challenging, 48% Moderately challenging, 10% Not at All difficult, 3% Don’t Know |
Health & social care | 15 % Extremely hard, 22% Very tough, 41 % Moderately challenging, 17 % Not at all, and 5% I’m not sure |
Tourism & Hospitality | It’s not difficult at all, but I don’t really know. |
IT & Communications | 10% Extremely hard, 27% Very tough, 56% Moderately challenging, 6% Not difficult at all, I don’t even know (No answers) |
Manufacturers | I don’t understand (No response) |
Non-profit organizations and charitable organisations | N/A Extremely hard (No response), 16% Very challenging, 53% Moderately challenging, 26% Not difficult at all, 5% I do not know |
Professional Services | 9% Extremely hard, 13% Very tough, 57% Moderately challenging, 22% Not difficult at all, N/A (No response) |
Wholesale & retail | It’s not difficult at all, but it is very difficult. |
Transport, logistics and storage | It’s not difficult at all, but it is very difficult. |
Finance and insurance are the industries that have been hardest hit, with almost 2/5 of businesses (30%) reporting it is difficult to recruit and retain staff.
The next four sectors are retail, wholesale, IT and communications, and hospitality and tourism (31%).
What will be the greatest challenge facing businesses in 2025?
Nearly a quarter of respondents said that inflation and rising costs will be the greatest concerns for business owners by 2025.
Another big concern for small businesses is the hiring and retention of staff (13,5%), while 10% are concerned that reduced consumer spending this year will be a major problem.
Laura Court-Jones is the Small Business Editor for Bionic. She said, “The combination of rising costs and decreased consumer spending can be deadly.” Businesses are looking for ways to reduce costs and increase profits without raising prices. Many insurance policies are not legally required and can be easily dropped by SMEs on a budget. This may lower fixed costs, but leaves businesses exposed to higher risks and more expensive claims in the long run, especially if they scrape off public liability or buildings insurance as a cost-cutting measure.
The original version of this article New report shows 82% of companies will struggle to retain staff by 2024.
