Moore Owner-Managed Business December 2023 Survey Results
Twice a year, the Moore UK network conducts a survey of 500 business owners with an annual turnover between £1 million and £30 million to gauge the general mood amongst owner-managed businesses (OMBs).
We began conducting the surveys in 2021 during the COVID-19 pandemic. So far, results from the surveys have painted a grim portrait of low confidence amongst business owners, reflecting the economic challenges of the past few years.
Thankfully, this year’s results have displayed a more optimistic outlook. Confidence amongst business owners is at its highest since the surveys began, despite the challenges of 2023.
That being said, there are still many issues concerning business owners for the year ahead.
Contents
The Positives
General Outlook
80% of businesses have a positive general outlook for the year ahead. 34% are highly confident, while 46% are fairly confident.
This is a stark contrast to former survey results – 36% of businesses were not confident in 2021, and 29% were not confident at the start of 2023. Our end-of-year survey has seen a 9% drop in those feeling negative about the year ahead: the highest overall drop since we began.
Revenue Targets
88% of businesses are confident that they’ll hit their revenue targets this year. 28% are highly confident, while 60% are fairly confident.
Our original survey in 2021 showed that 30% of businesses were not confident in their ability to meet the year’s revenue target. That figure has now decreased to just 12%.
Profitability Target
80% of business owners were confident of meeting their profitability targets for the year. A considerable 31% were highly confident, while 49% were fairly confident.
The number of businesses with no confidence that they’d hit their profitability targets has nearly fallen by half since 2021. In 2021, 39% of businesses were not confident they’d hit their profitability targets. Now, just 20% of businesses are lacking confidence.
Recruitment
Recruitment levels are on the rise, suggesting signs of growth in businesses and the UK job market.
4 in 10 OMBs have recruited a new member of staff in the past 3 months. Additionally, 49% of businesses claim they are looking to hire in the next 3 months.
The amount of businesses that have had their workforce decrease has fallen substantially. In 2021, 24% of businesses had their workforce decrease. Now just 8% of businesses have experienced a decline in their workforce.
The Negatives
Cashflow
The majority of owners surveyed stated that potential cashflow issues are an area of concern for 2024.
72% of companies are worried about cashflow problems. Only 28% of businesses were not concerned at all.
We asked directors what ideas they had in mind to resolve any potential cashflow issues:
- “Making redundancies and using AI”
- “I don’t know any remedies to overcome cashflow”
- “I am still thinking about it”
- “Not sure yet”
- “Negotiating better terms with suppliers and clients”
- “Bank loans and private equity”
- “We will apply for funding opportunities”
- “Maximising profits where we can. Cutting back on staff”
Debt Management
Many companies were worried about debt management. Interest rates on loans can quickly cause a business’s debts to spiral out of control.
61% of owners were worried about keeping on top of their debts. 22% of owners were extremely concerned. 39% were somewhat concerned.
Only 39% of directors were not concerned at all.
Profitability
Despite many owners feeling confident they’ll hit their targets for 2024, profitability remains a concern.
In fact, 75% of businesses claimed they were concerned about potential profitability issues. 28% were extremely concerned. 47% were somewhat concerned.
Only 25% of directors were not concerned about profitability.
Recruitment
While the number of employers looking to recruit has risen, many of these businesses are struggling to actually find candidates to fill the roles on offer.
Only 21% of businesses claim to have not had any issues recruiting staff. That leaves nearly 80% of businesses struggling with recruitment issues.
This has led to some nasty knock-on effects. 41% claim existing staff now face increased workloads. 22% say that work morale is low as a result.
Recruitment issues aren’t just affecting the mood in the office either; 24% of businesses have had to reject new work opportunities due to a lack of staff, stifling potential growth.
Speak to an Expert
Our end-of-year survey for 2023 has been something of a mixed bag; owners may be the most optimistic they’ve been since COVID-19, but a host of challenges still lie in wait.
Owners struggling with cashflow, debt, and profitability problems should seek the advice of an experienced insolvency practitioner. Our team can assess your situation and guide you towards the best solution for you, whether that’s providing a safe exit from the business or securing a successful financial turnaround.
Get in touch today to book a free consultation.
