Costs hinder firms’ ability to survive

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?”

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