Rising inflation and cybersecurity are the most common fears among British SMEs for 2018, according to new research from Barclays Business Banking.1
SMEs believe these issues are most likely to negatively impact their growth in 2018, while consumer demand is most widely expected to have a positive impact.
Inflation, cyberattacks, and state of the UK economy more widely feared than Brexit
According to Barclays’ annual SME Hopes and Fears Index1, which asks decision makers at UK SMEs which factors they expect to help or hinder their business growth in 2018, inflation is most cited as a fear (by 43%). It can increase costs for a business, and also impact the wider economy, with 36% fearing the effects of prices rising faster than wages, which could put pressure on consumers.
Inflation is followed by the risk of cyberattacks (41%) and the state of the UK economy (40%). These factors are followed by fraudsters targeting small businesses (39%), and Brexit and UK politics (35% each), which rank sixth.
Top 5 SME fears for 2018:
| Factors SMEs expect to hinder business growth in 2018 | Ranking |
| Inflation | 1 (43%) |
| Cyberattacks | 2 (41%) |
| State of the UK economy | 3 (40%) |
| Fraudsters targeting my business | 4 (39%) |
| Price inflation outpacing wage rises | 5 (36%) |
In May 2017, Barclays launched a major engagement campaign, Barclays DigiSafe, to raise awareness of cyberattacks, fraud and scams. It includes a £10m national advertising campaign, and provides customers with additional tools to protect themselves. Dedicated support for the bank’s one million SME clients has included free support clinics.
SMEs have high hopes for consumer demand and are more positive about technology
When it comes to the factors business owners expect to positively impact their business growth, consumer demand is most widely tipped to have a positive impact, with 50% expecting it to do so. This is a change from last year’s results2 when just 22% expected it to have a positive impact.
SMEs have become more positive about technology, with 48% expecting that availability of better technology will have a positive impact on their business (37% last year), and 42% expecting e-commerce/digital presence to do so (23% last year).
Top 5 SME hopes for 2018:
| Factors SMEs believe will have a positive impact on business growth in 2018 | Ranking |
| Consumer demand | 1 (50%) |
| Availability of better technology | 2 (48%) |
| E-commerce/ digital presence | 3 (42%) |
| Investment in the local area | 4 (34%) |
| International marketing opportunities | 5 (28%) |
Reflecting the uncertain times, there is a near even split among SMEs about the outlook for 2018, with 46% believing it will be a year of opportunities, and 49% predicting a year of challenges.
Most SMEs plan to maintain the same level of investment (65%) and employee numbers (68%) as for 2017. However, those making changes are generally positive, with 21% planning to increase the number of employees, compared with 5% planning a decrease, and 20% planning an increase in investment, compared with 8% planning a decrease.
Stuart Brown, Head of SME Scotland at Barclays Business Banking, commented: “The research reflects small businesses being empowered by new technology and e-commerce. Compared with a year ago, more think these developments will have a positive impact on their business. From our work with small companies, we see them making more use of data and online services, including our own, that help them manage their marketing and finances more easily and effectively. By making the most of these opportunities, SMEs can increase sales, cut costs and save time, strengthening their business.
“Inflation is clearly a worry, and in particular the potential for prices to rise faster than wages. Business owners are clearly taking a prudent and cautious approach to the year ahead. However, there are positive signs of SMEs investing more and hiring more staff.”
¹ 2017 research (looking at 2018 hopes and fears) was conducted by Opinium on behalf of Barclays, 500 online interviews with UK senior decision makers/business owners in SMEs defined as having 250 or less employees, between 9th– 16th November 2017.
2 2016 research (looking at 2017 hopes and fears) was conducted by OnePoll on behalf of Barclays, 500 online interviews with UK senior decision makers/business owners in SMEs defined as having 250 or less employees, between 12th– 19th December 2016
There is a new variant of ransomware, known as the Petya ransomware, which recently affected organisations on a global scale.
And it’s not just large organisations which are at risk, it is vitally important that all businesses are alert to the potential of an attack.
Phishing emails are used by cyber criminals to distribute these attacks, which will contain a link or attachment. If this link or attachment is opened it will install malicious software which will encrypt your files. They will become locked and you will not be able to access them. Often the first you will know of it is when you are asked to pay a sum of money for a decryption code to give you access to your data.
Over the last couple of years there have been several major cyber attacks and most of them have been distributed via email. These emails can be very authentic looking, but there are usually clues that they are not genuine. For example, the sender address or ‘to’ address may look suspicious, there may be spelling mistakes or the grammar may not sound right. In order to pick up on these clues however, it is necessary for all employees to be aware of the risks and always vigilant when opening emails. The risk should not be underestimated and we suggest that most organisations could be doing more to educate their team about the risks.
To help organisations reduce the risk of a ransomware attack we have compiled a 10 step guide to minimise email security threats. It is hoped that this document will enable organisations to keep employees informed of the risks and remind them of what to look out for. This will help to ultimately reduce the risk of a ransomware attack.
Click here to view: How to minimise email security threats
For further advice on email security and ransomware or how to minimise the risk to your business please contact SortmyPC to arrange a consultation.
Phone: 0131 477 2644
Email: enquiries@sortmypc.co.uk
Website: www.sortmypc.co.uk
Arts & Business Scotland are delighted to confirm that bookings are open for our new business briefing Cyber Security: What You Need To Know, led by Accenture (Friday 21 July) and bookings are still open for A General Tax Guide for Arts and Heritage Organisations (Friday 23 July in Perth).
Cyber Security: What You Need To Know – Business Briefing
Friday 21 July 2017 | Arts & Business Scotland, Edinburgh
Registration: 8:30 | Event: 9:00-10:30
Speaker: Rick Hemsley (Managing Director, UKI Accenture Security Practice)
The scope of cyber security has never been so prevalent as almost every business is potentially at threat. This morning briefing will cover how to prepare a cyber resilience strategy, lessons learned from the recent ‘Wannacry’ virus, and preparing for GDPR.
For full details, address and booking click here.
A General Tax Guide for Arts and Heritage Organisations
Friday 23 July 2017 | Perth Concert Hall, Perth
Registration: 8.30am | Event: 9am-12.30pm followed by lunch and general discussion
Speakers: Kirsty Murray (Tax Director) and Scott Craig (VAT Partner), Scott Moncrieff
This half-day seminar is a must for all financial or budget holding staff and anyone who wants to know how tax affects (and can benefit) arts and heritage organisations and individuals. This session will highlight available tax savings and cover corporate tax, VAT, gift aid, basic rules, common issues and opportunities.
Full details, address and booking click here.
Please feel free to circulate this invitation to your networks and any colleagues who may be interested.
If you would like some more information on these events please do not hesitate to get in touch with Adam Castle (Event Coordinator at Arts & Business Scotland) at events@aandbscotland.org.uk.
