More than one in four (26%) business leaders think it will take them two years or more to recover from the economic and political hurdles of the past five years, according to a recent survey of 531 business leaders conducted by Startups.co.uk.
Additionally, only 8% of businesses said they had not been negatively impacted by the economic instability of the last five years.
22% of respondents reported they have already recovered. This leaves the majority (66%) of business leaders still navigating the difficulties of rebuilding and adjusting.
The survey also found that expected recovery periods for businesses differ between industries. 11% of hospitality firms anticipate recovery will take more than two years, whereas 11% in the creative arts believe they may never fully recover.
Construction (59%) and consulting firms (52%) were the most likely to say they had already recovered or had not been impacted by the last five years.
These results indicate sector-specific challenges (such as hospitality’s vulnerability to COVID-19 restrictions, shifts in consumer behavior, and staffing shortages) while highlighting the need for tailored recovery strategies between industries.
The Startups survey also found that 1 in 10 small businesses based in the South West and Northern Ireland think that they will never recover from the past five years.
Scottish businesses reported expecting some of the longest recovery times, 17% think it will take them over two years to recover.
On the flip side, the East Midlands reported the highest improvement rate at 33% of small businesses stating that they have already made a recovery.
Of the businesses that have already recovered, 35% said they were either looking to sell or step back from their business, compared to a higher 56% of those seeking to maintain responsibilities or become more active.
This data suggests a more positive outlook, with the majority of UK business owners choosing to persevere rather than give up, underscoring their resilience in the face of a challenging economic headwind.
Of the 35% who have already recovered, the decision to either sell or step back hints at a natural point to exit or reduce their involvement. It reflects differing attitudes toward the next phase of business: growth versus consolidation or transition.
Editor of Startups.co.uk Zohra Huda said, “Our statistics speak for themselves. It’s been a brutal onslaught for the backbone of the British economy, our small businesses. In spite of the hope brought by a new government in 2024, focus has had to switch from growing to just getting by, with the impact being felt by employers and employees alike.”
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