Business News Round Up (30/10/2023)
See more of the latest trends and top business news.
Over half of UK’s SMEs reliant on credit cards to support their businesses day-to-day finds GRENKE UK Lease of Life report
A new report commissioned by GRENKE UK, the leasing solution partner for small and medium-sized enterprises, designed to understand the current state of SME financing in the UK, has found that over half the UK’s SMEs are relying on credit cards to support their businesses day-to-day. These findings highlight how credit cards are increasingly becoming the go-to quick fix solution despite carrying drawbacks and being a less efficient form of financing for SMEs. The survey of 600 business owners across the UK found that after credit cards, business overdrafts and bank loans are jointly the second most popular form of financing amongst SMEs. Two fifths (39%) of respondents use these options. Meanwhile, a third (33%) reported that government loans are their primary form of financing, reflecting the high levels of government financial support provided to businesses following the onset of the Covid-19 pandemic, and more recently the energy crisis. Across the eight sectors examined, the Lease of Life report found that SMEs in the retail sector are the most likely to rely on credit cards with nearly 60% sticking their costs on plastic, despite the limited nature of this form of financing as well as the increased risk of exposure to higher interest rates. At a regional level, Scotland sees the highest use of credit cards with nearly two thirds (60%) of Scottish SMEs using this as their primary form of financing.
Scotland’s next frontier: moving from research to real world impact
In recent years, Scotland has made remarkable strides in advancing its data infrastructure. Thanks to initiatives like the City Region Deal and the £661 million Data-Driven Innovation (DDI) program, Scotland has surged ahead of England and Wales in this domain. Significant progress has been achieved in building and equipping DDI Innovation Hubs such as the Bayes Centre, Usher Institute, and the Edinburgh International Data Facility. Plus, key projects like the Data Vault, Spatial Hub, and the EPCC are pivotal in helping us reach the goal of making Edinburgh the data capital of Europe. All this, however, is not enough. While there’s no denying the importance of these developments, it’s now time to do more than build physical buildings, develop equipment, and place such immense emphasis on academia. Thus far, frontline services have been overlooked as the primary focus was on conducting extensive retrospective research rather than improving the critical infrastructure. Naturally, academics aren’t interested in the nitty-gritty, often deemed mundane and unexciting, aspects of engineering. Yet, this is precisely what will yield the greatest results and benefits to society. We’ve got to get the ‘plumbing’ right by effectively connecting different systems to make a positive impact on actual operations. At the moment, it’s as though we just spent large amounts of money on a water treatment plant but still have a house with blocked pipes.
Flexible office operator opens in Manchester
Flexible office operator Cubo has opened in Manchester, its first site in the North West. Its new 30,000 sq ft workspace has opened at The Lincoln, on Lincoln Square, Brazennose Street. Cubo at The Lincoln offers Grade A flexible office space to a range of occupiers including start-ups, SMEs, and corporates. Just under 800 desks are arranged across two floors and offices are available in a variety of sizes and configurations. Hot desking and designated desks are also available. Members benefit from 24/7 access, use of communal spaces, private areas, break-out spaces, meeting rooms and kitchens, and an inclusive barista service with beer and fizz on tap, along with a programme of free networking events. The Lincoln will also offer a range of convenient onsite amenities, including wellness room, spin studio, and yoga studio. It will provide 120 cycle spaces and 164 lockers, along with shower facilities equipped with a drying room.
https://www.insidermedia.com/news/north-west/flexible-office-operator-opens-in-manchester
Collaboration is key to meeting Scotland’s skills challenges
Our latest Quarterly Economic Indicator report highlights the many key challenges facing Scottish businesses, but none are more pressing than the volatile labour market and the pressure on finding the right skills and talent to help our economy grow. Strong competition for labour and skills is leaving many firms with job vacancies that they simply can’t fill, and that lack of staff is making it difficult for firms to fulfil orders. Inflation is also placing great pressure on businesses to meet growing demands for higher wages, with some sectors such as agriculture and tourism experiencing significant impacts from Brexit. These recruitment difficulties continue to be a significant challenge with 55% of businesses highlighting this as a pressing and worrying issue. On top of that, nearly one-quarter of employers surveyed expect those staff numbers will need to increase to help them meet demand. Although official labour market statistics would indicate that the overall employment and unemployment figures have remained stable, our data indicates that businesses continue to face significant challenges hiring the people that they need. An ageing population combined with the prospect of reduced net migration to Scotland also poses a substantial challenge to Scotland’s long-term economic prosperity and the needs of businesses to access the necessary skills and talent. Our people are at the heart of our businesses. We need access to the best talent to drive business growth and a clear plan to upskill and reskill our workforce at all levels. Productivity growth is the sustainable way to secure growth in quality jobs and increase economic opportunities. Our view is that the single most important contributing factor is education, training, and upskilling at all levels.