Small Business Confidence Slumps as Cost Pressures Bite
Small businesses have hit a confidence slump, according to the latest Small Business Confidence Index (SBCI) from ASSOCHAM and Dun & Bradstreet. Optimism dropped sharply to 71 points in Q1 2023, down from a strong 87 points in Q2 2022.
Exporters and Domestic Firms Feel the Pinch
Small exporters are bearing the brunt of the gloomy outlook, with just 48% expecting new export orders to rise in early 2023—plummeting from 86% last year. Domestic businesses aren’t faring much better, as only 67% predict sales growth, down from 75% in mid-2022.
Rising Costs Squeeze Growth and Hiring Plans
Inflated input prices and falling demand are squeezing small firms hard. Just 62% plan new investments this quarter, a nosedive from 77% six months ago. Hiring is also slowing — only 57% of SMEs expect to recruit, down from 76% previously.
Profitability and Cash Flow Worries Mount
Profit forecasts are taking a hit too, with only 62% expecting gains in Q1 2023, compared to 77% last year. This shift signals unpredictable cash flows and tighter margins.
In times like these, getting invoices paid on time is vital for survival. RIABU champions the Virtuous Revenue Cycle (VRC), emphasising fast, accurate invoicing and clear customer communication to keep cash flowing.
“Early communication and swift issue resolution can drastically improve accounts receivable and keep businesses afloat,” says RIABU.
Want more savvy cash flow tips? Grab the guide Let The Cash Flow. Find out how RIABU helps small businesses get paid on time at RIABU.com.
