November GDP data - small business owners respond

Businesses are facing rising interest rates, sky-high inflation and supply chain disruption, but there's still life in the economy, as shown by these better than expected numbers in November. Many businesses are highly resilient and their management teams are navigating through these headwinds. It's not all bad news. Amid the economic carnage, we have been putting in place trade finance facilities for businesses that are winning large orders, invoice finance facilities for those winning new customers and asset finance for those investing in new machinery to increase capacity. After three years of pain, the average UK business is now battle-hardened.

All social enterprises are struggling due to economic uncertainty and lack of funding. Like many, we work primarily with local governments, who are cash-strapped, working out how to spend their annual budgets, many of which have been cut by 70%. On the plus side, the over-50s with whom we work are one of the groups most severely hit and are finally being recognised as needing support. The challenge is to ensure we become funder's go-to organisation when they are considering how to provide older people with the help that they need.

In uncertain times businesses that specialise in offering mental health treatment are busier than ever. The main challenges are how to offer a variety of effective, ethical, evidence-based interventions at a variety of price points including free, to be able to be as inclusive as possible. I moved from employed to self-employed in April 2021 and, as a business owner who is also a parent and homeowner, the concerns about rising costs mean holding bills and costs and income in mind in a way I've not had to do previously. However, being self-employed does offer more flex to earn more if needed by taking on additional work rather than being limited to a fixed monthly income so it's most definitely a case of swings and roundabouts.

Thankfully, both during the pandemic and the current economic crisis, our web design business has seen continued growth as people take on extra 'side hustles' or build their own businesses to help them ride out the storm. The biggest difference we are seeing during this crisis is that clients need alternative payment options, like instalment plans, to make their website projects affordable. This affects our own cashflow but is a great way of continuing to bring in work. 2023 looks bright for our business as we bring in new services to meet the demands of our clients.

January has been a busy start for us, but a lot of the businesses we work with want quick results, namely Google Ads and social media advertising. Business owners looking for quick wins rather than the longer-term picture, which you achieve with organic SEO, is a sign of the times. Businesses need revenue today not tomorrow. Overall, I'm feeling confident about 2023. We help businesses get found online and most savvy business owners know this is key to both survival and growth. We’ve been through recessions before and it has been proven that businesses that continue to invest in marketing come out better in the end. The pandemic created pure panic. My risk assessment at the start completely flipped, as the clients I thought would be fine, struggled. And those I thought would struggle, thrived. So it was an unknown for everyone.

There are 108 rental properties available between 94 letting agents within three postcodes in East London, known for the high demand of tenants. The challenge will be to navigate through this period where we can't create stock, and demand is increasing by the day.

Whilst my schedule is full to bursting as procurement opportunities are being released at a rate of knots, I still can't help feeling worried about the future and the future of many of my small business colleagues. I am consciously preparing for a long winter. 1 in 4 small businesses are saying that they are likely to close or scale back. Whilst small business owners are always fantastic plate spinners with the hides of rhinos, you've got to wonder how much more we can take.

Business is good. The post-pandemic shift in consumer behaviour, which has its roots in the 2008 crash, continues to establish itself. I may even be tempted to call it a permanent feature. December used to be silent with little or no new regular business in the domestic cleaning industry followed by January always showing 'one off one on' static growth. Not so this winter. For the first time in 20 years of business we managed to sustain growth during December and the momentum is continuing this week.

After the Summer holidays of 2022, most retailers started September with such hope. We were heading towards the first Christmas since 2019 with no restrictions. But then things went wrong with our economy, from the mini-Budget to soaring energy prices and inflation in general taking disposable income out of people's pockets. In hope, many of us have been holding on, but then we have had to deal with the strikes. Don't get me wrong, we completely understand why various workers have been striking for various reasons. It just meant that many small businesses missed out on website sales. It also stopped people from coming into the area. My shop is located where there are buses, tubes and trains, but on a strike day of any transport type, people just don't come into the area or events are cancelled and then people don't need gifts.

For HR people, the focus for 2023 needs to be a more holistic approach to well-being. Financial stress from spiralling costs, caring responsibility stress from a crisis in childcare and caring industries will all have a direct impact on their productivity and engagement levels at work. Employers need to be ready to support their people ahead of them falling towards a crisis point. Most people trust their employer more than they trust the government, so helping them to educate themselves around key topics will help to manage organisational stress levels better.

My customer demographic is SME manufacturers who are a very resilient and resourceful bunch. They've had to contend with Inflation, supply chain disruption, labour shortages and crazy energy prices but they know diversifying into new markets is the best protection for the long-term security of their companies. When the economy is in such a state it's difficult to be optimistic but I believe now is the time to invest in marketing my services so I'm in a strong position when things improve.

Our fourth quarter sales were down roughly 40% on the previous year and January has so far been very quiet, too. We stock sustainable brands and sadly several have closed over the past few months. One has just gone into adminstration and a couple more have shared that they are uncertain about the future. Last year was really tough for us and I suspect this year is going to be more of the same. That all sounds very bleak but in December I went back to my ‘day job’ in Social Work for two days a week. With a personal income from elsewhere, I now feel that Smallkind is in a good position to ride out this economic disaster with gusto.

There's no doubt that a rapid-fire succession of base rate rises is starting to have their presumably desired effect and dampen the economy. The cost of pretty much all types of finance has increased, making business investment less attractive and taking money out of consumers' pockets. Let's hope the Bank of England take notice of the latest GDP data and hold off on any more rate rises while they see which way the economy is heading.