SMALL BUSINESS CRISIS IN SUFFOLK
LOCAL ENTREPRENEURS DEMAND URGENT SUPPORT AMID RISING COSTS AND SHRINKING RESOURCES
Small businesses across Suffolk are calling on the government to honour its pre-election commitment to support the sector, as new challenges from wage increases, export difficulties, and reduced support funding threaten their growth and survival.
MENTA, Suffolk’s leading enterprise support organisation for start-ups, small, and micro-businesses, highlights these challenges through the latest findings from the National Enterprise Network (NEN) 2024 Business Barometer. This report, based on one of the UK’s most extensive surveys of new and early-stage businesses, shows a significant decline in business confidence. Many entrepreneurs expect to raise prices and reduce staffing as they battle high operating costs.
Key findings reveal:
• 90% of small and micro-businesses anticipate raising prices, with 80% forecasting increases above inflation and many planning hikes of 6-10%.
• Over half of businesses saw increased turnover in the past year, but escalating costs have eroded profit margins, preventing further investment in new jobs.
• Rising wages are a key concern for 73% of businesses, and a third worry they may need to reduce staff.
MENTA CEO Alex Till, who is also Chair of NEN, emphasised the need for targeted support policies for small businesses, saying: “In Suffolk, small businesses form the lifeblood of our local economy, creating jobs and sustaining communities. Yet, rising costs and shrinking support have placed an immense strain on them. Businesses here in Suffolk need policies that will help them access the skills, training, and funding they need—when they need it—to weather these economic storms and drive local growth.”
The Barometer, conducted by NEN in collaboration with Enterprise Northern Ireland, gathered insights from over 1,000 entrepreneurs, owners, and managers of small businesses across various sectors. The survey shows a 10% decrease in businesses anticipating growth this year and nearly 20% struggling or contracting. Despite turnover gains, 60% report stagnant or declining profits due to cost pressures on wages, materials, property, and fuel.
In response to these challenges, 80% of businesses are now focused on growth within the UK, a significant shift as only 14% target the EU market—a notable drop since last year’s 33%.
Local Suffolk businesses have increasingly turned to enterprise agencies like MENTA for guidance, with 40% reaching out in the past year. The survey shows that 48% prefer face-to-face support, and 35% rank networking and collaboration highly, underscoring the importance of locally delivered enterprise support and affordable co-working spaces such as those provided by MENTA’s @ inc Suffolk.
MENTA continues to deliver critical face-to-face and online support, training, and access to flexible co-working options for Suffolk's entrepreneurs, all geared toward fostering sustainable growth. As the government prepares for the incoming budget, MENTA calls for renewed investment in grassroots support to help Suffolk’s small businesses weather this storm and secure a path to recovery.
