The UK economic outlook for 2023 is looking bleak with inflation expected to remain above 10% until summer and the IMF forecasting Britain to be the only leading economy to shrink over the next 12 months. For small businesses, this is a worrying time, with running costs up 38% and consumer spending down 29%, one survey has found that 92% of UK startups and SMEs are fearful about the future. As business owners look ahead to a difficult year, it is vital that they learn from previous recessions and prepare their companies to not only survive this period but identify the potential growth opportunities that economic downturns can present. It is equally important for policymakers who develop and implement legislation that impact small businesses to have an accurate understanding of their challenges. 

For small businesses facing a period of economic crisis, it is key that they establish effective financial plans, undertake proper debt management and place savings and cash flow at the top of their priorities. However this can be difficult which is why access to accurate data about their own operations and the wider macroeconomic situation can be vital in allowing small businesses to navigate times of uncertainty. As the effects of the predicted recession begin to take their toll, the question facing small business owners is what can they do to remain resilient in the face of difficulty? While policymakers will need to ensure they are offering small businesses the vital support they need. 

This Digital Dialogue, held in partnership with Intuit Quickbooks, explored the challenges that small businesses are facing as they attempt to prepare for the looming recession, what steps they can take to ensure they successfully navigate this period and what policymakers could do to support these vital components of the UK economy. 

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