With over a third (35%) of small business owners (SBOs) saying 2024 has been their slowest for growth in the past five years, new research by VistaPrint, the leading print and design partner for small businesses, finds most would still encourage their friends and family to start their own entrepreneurial journey, underscoring the resilience of the sector.
The research surveyed the business growth and general sentiment of over 1,000 UK SBOs aged 18-64. It uncovered that business owners with under 10 employees have found 2024 the most challenging so far, with access to finance one of the biggest barriers to expansion.
The findings coincide with today’s relaunch of VistaPrint’s ‘Realising the Remarkable’ programme – a £60,000 grant initiative in partnership with Enterprise Nation aimed at helping small businesses overcome challenges such as these. The programme will award 20 SBOs £3,000 each, along with expert design and marketing support, helping them to pursue their business ambitions and take their next step towards growth.
Most businesses cited the cost of living (74%), increasing material costs (39%), and limited access to finance (32%) as the biggest challenges they faced in the first half of the year.
In addition to these broad economic challenges, SBOs also find it hard to stand out from their competitors, with over a quarter (26%) identifying high marketing costs as a key factor limiting their progress.
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Access to external financing remains a challenge for SBOs looking to scale. The data found just 1% of small businesses receive grants to support their growth efforts.
To address this challenge, most SBOs (77%) turn to self-funding to launch their businesses, with 83% continuing to rely on their own resources for promotion and marketing as they grow.
Family support also plays a significant role in early-stage funding, with 10% of SBOs relying on family for financial backing, with Gen Z three times more likely to dip into the bank of mum and dad for start-up funding.
Friends and family also lend a hand in promoting and marketing these businesses, with nearly 1 in 10 (9%) of SBOs claiming to have received funds from them to boost their marketing efforts.
Small business owners are optimistic about the future
Despite these challenges, SBOs remain positive about entrepreneurship. A majority (56%) would still encourage friends and family to start their own business based on their experiences, with this enthusiasm rising to 68% among Gen Z, the youngest generation of entrepreneurs.
This optimism could stem from the many benefits of running a small business. Two-thirds (66%) of UK SBOs highlight work/life balance as their favourite aspect of being their own boss, while nearly a third (29%) say their passion for their business is what they love most.
SBOs excel at celebrating their victories, which helps boost morale and motivation during tough times. Notably, 1 in 5 (21%) SBOs shared that they lift their spirits by doing a ‘little happy dance’ to mark their business successes, with 28% reinvesting profits, and one in ten celebrating by eating out at a local independent restaurant.
Katie Eldred, UK Country Manager of VistaPrint, said: “Following last year’s success, we are so excited to relaunch the Realising the Remarkable programme.
“Small business owners are the backbone of the UK economy. With limited access to external funding cited as a key barrier to growth, our grant programme with Enterprise Nation is designed to provide small business owners with the financial support and expert guidance they need to unlock their growth potential and demonstrate their incredible value to our country. We encourage small business owners from all across the nation to apply and realise their remarkable.”
Emma Jones, CBE, founder and CEO of small business support platform and membership community, Enterprise Nation, said: “Small businesses have faced a number of challenges this year, but what this research demonstrates is that they are staying strong and remain wonderfully optimistic about the future.
“We know entrepreneurs are resilient and adaptable in the face of adversity and will be seeking out support, fresh ideas and new opportunities. This brilliant programme of support from Vistaprint offers exactly that – a lifeline and a clear path towards growth.”
