Newly published research has revealed the extent to which money worries are causing some SME owners to lose sleep – and at the same time, are hampering the growth of businesses throughout the UK.
The figures, from online accountants KashFlow, show that one in four small firms are not hiring staff, for fear of over-complicating their payroll and being unable to manage.
A quarter of SME owners are losing sleep due to financial concerns and almost a third say they have problems keeping track of their company’s money.
If this is concerning for SMEs, it could make for even more worrying reading for their creditors – that third who have difficulty tracking their funds also said it means they could not pay off their loans, if their creditors called in their debts at short notice.
And roughly one in six, 16% of the survey’s respondents, say they could lose their business completely due to a single accounting error.
The survey collated the views of 500 SME owners, and highlights the pressures that can arise during a first foray into the business world.
In many cases, SMEs are likely to have grown out of one-man or one-woman projects, as freelancer workloads become too much for one person to handle.
But this does not mean people have the requisite management skills – and that not only hampers business growth and puts SMEs at risk, it can also put creditors’ finances under threat as well.