Small Business Confidence Takes a Hit in Early 2023
The Small Business Confidence Index (SBCI) has dropped sharply, signalling tougher times ahead. The latest survey by industry body ASSOCHAM and business consultants Dun & Bradstreet reveals small business optimism slid from 87 points in Q2 2022 to just 71 points in Q1 2023.
Exporters and Domestic Sales Feeling the Squeeze
Small exporters are badly hit, with only 48% expecting a rise in new export orders this quarter, down from a booming 86% a year ago. Domestic sales aren’t faring much better—just 67% of small businesses expect sales to climb in Q1 2023, a fall from 75% in Q2 2022.
Rising Costs and Falling Demand Crippling Growth Plans
- Input costs are soaring, squeezing firm profits and prompting caution on spending.
- Only 62% plan new investments this quarter, down from 77% last year.
- Hiring intentions have plunged to 57% from 76%.
- Profitability outlook mirrors the gloom, dropping from 77% to 62% expecting gains.
Cash Flow is King: Get Paid on Time or Risk Collapse
The bleak profit forecasts suggest cash flow will be unpredictable. In tough times, small firms must focus on timely invoice payments to survive. Industry expert RIABU urges use of the Virtuous Revenue Cycle (VRC): accurate, quick invoicing tailored to customer needs combined with clear processes.
“Early communication with customers and fast dispute resolution make a real difference in ensuring firms get paid on time,” RIABU says.
Want top tips on cash flow management? Check out the book Let The Cash Flow. For more on how RIABU helps small businesses boost timely payments, visit RIABU.com.
