Costs hinder firms' ability to survive
Running costs so high that many practices believe they will flounder if the situation deteriorates further
INCREASING COSTS are hindering small firms’ ability to survive, according to a new survey.
Research among 87 accountancy firms, found that 42% of accounting advisors believe their business will die if costs continue to rise at current rates.
The Cebr/Make It Cheaper survey found that rising costs (72%) was the most significant threat to their practice, with 82% warning that the country has become an unbearably expensive place to do business.
ReesRussell partner Jonathan Russell said many factors were impinging on entrepreneurs: “With ever increasing complexity of regulation, the lack of available finance and depressed demand, there is very little incentive even for the most enthusiastic entrepreneur.”
David Ingall of JWPCreers said: “Rising costs are a problem for all businesses but particularly smaller ones. A major cost is petrol and that seems to be ever increasing whatever the market price seems to be. The Government could take a hand in this as the increase in price means an increase in the VAT collected. Or is the increase in VAT on fuel covering a shortfall in other areas?”