Cost pressure amid global economic shifts has become a top concern for 58% of SMEs as they also face workforce challenges, said ACCA recently when releasing results of a survey.
“As we enter the new year, SMEs are grappling with a wide spectrum of challenges, but our findings are also a clarion call for SMEs to embrace strategic innovation,” said Aleksandra Zaronina-Kirillova, head of SME at ACCA. “By addressing these challenges head-on, SMEs can unlock new growth avenues and strengthen their market position."
Key findings
- Cost pressure and the economy: SMEs face significant increases in utility prices and supplies, with 58% of businesses highlighting higher costs as their top concern.
- A quarter of respondents said utility prices had surged by over 20%. This significant challenge underscores the need for effective cost management and innovative financial strategies.
- Workforce and talent management: The study reveals a notable rise in job vacancies and challenges in filling specific roles.
- Increased job vacancies for professional workers were reported by 31% of businesses, and 14% were unable to find suitable candidates for clerical workers, technicians, and service and sales workers. This calls for a renewed focus on talent acquisition, skill development, and retention strategies.
- SMEs and the ESG agenda: Nearly 50% of SMEs are now required to provide ESG information, highlighting the growing importance of sustainable practices.
- However, the report identifies a gap in the ability to generate and manage this data, presenting both a challenge and an opportunity for SMEs.
According to Aleksandra Zaronina-Kirillova, the research also offers a roadmap for SMEs to emerge stronger and more agile.
The roadmap recommends the adoption of digital technologies, enabling SMEs to streamline operations, reduce costs, and enhance productivity, she said.
It also emphasises the importance of embracing sustainable practices, not only as a regulatory compliance measure but also as a strategic move to attract new business and customers, ACCA noted.
It also encourages SMEs to develop and retain top talent through continuous learning and development opportunities, the accountancy body added.
In this rapidly evolving landscape, the role of accountants, especially those in small and medium-sized practices (SMPs) can be pivotal, ACCA pointed out.
Accountants are not just financial stewards but strategic advisers who can guide SMEs through complex challenges such as managing rising operational costs, navigating new regulatory requirements, and implementing effective ESG practices, ACCA said.
Their expertise in financial management and strategic planning is crucial for SMEs to optimise resources, identify cost-saving opportunities, and ensure compliance with evolving regulations, the organisation added.
