// EXPERT PROFILE //
The common challenges faced by SMEs
AND HOW TO OVERCOME THEM
The UK is a thriving nation of SMEs , accounting for 99.9 % of the business population . And despite challenging conditions , there is still a high rate of small businesses being born . Shalini Khemka CBE , Founder and CEO of E2E , an entrepreneurial community dedicated to supporting SMEs through their business journey , talks about some of the common challenges faced by SMEs and what can be implemented to overcome them .
“
SINCE 2022 , THE DEMAND FOR FINANCE BY SMES HAS
LESSENED , MOSTLY DUE TO THE FACT
THAT THE DOWNTURN IN THE ECONOMY CAUSED A LACK OF CONFIDENCE
LEVELS IN THESE FIRMS .
HROUGHOUT MY CAREER ,
T
I ’ ve had the privilege of working with numerous business leaders , gaining firsthand insight into the challenges they ’ ve faced along their entrepreneurial journeys .
In the current economic climate , several challenges stand out as particularly pertinent .
Inflation , for instance , has emerged as a significant concern , placing pressure on operating costs and decreasing profit margins . This inflationary environment demands for businesses to reevaluate their pricing strategies and operational efficiencies in order to maintain their competitiveness and financial stability .
Additionally , securing adequate funding remains a persistent challenge for SMEs . Accessing capital for expansion , innovation or even day-to-day operations can be an uphill battle , especially in periods of economic uncertainty or market volatility . SMEs often grapple with identifying and securing diverse funding sources tailored to their growth objectives .
Taxes represent another critical consideration for business leaders , with evolving regulatory landscapes demanding ongoing compliance efforts and strategic tax planning . Navigating tax codes and optimising tax structures is essential for preserving financial health and maximising profitability amid changing fiscal policies .
Moreover , the overall state of the economy introduces a layer of unpredictability , influencing consumer behaviour , market demand and business performance . Economic fluctuations , geopolitical events and global market dynamics can significantly impact SMEs , requiring agile strategies to adapt and thrive in dynamic environments .
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