A new report published by the UK ’ s largest small business lending platform , Funding Circle , in partnership with insights consultancy , Savanta , looked at how resilience for small businesses and the impact of staff well-being is more important now than ever before .

Small businesses have been hard hit by the pandemic , geopolitical issues and economic uncertainty over the last few years . More than three in five ( 63 %) UK SMEs say this period has been the most difficult in their history with almost two-thirds ( 64 %) saying it ’ s been the most stressful . However , business owners continue to have a resilient mindset and three-quarters ( 74 %) of small business leaders would still recommend running a small business to others .

To explore the characteristics of being a resilient business , the research rated small businesses against financial , operational and personal resilience metrics , with those performing well across all three categories most likely to thrive during challenging times . The research revealed that :

• Highly resilient businesses outperform financially and are more positive about future growth prospects

Amid limited budgets , choosing the right technology for SMEs is crucial . A study by Funding

Circle and Savanta emphasises resilience and staff well-being ’ s significance in navigating challenges .

• Looking ahead , over half ( 54 %) of businesses are positive about their growth prospects in 2023 – but this is six times higher for high resilience businesses ( 84 % vs 13 %)

Prioritising well-being is vital to flourish as a small business

The data also highlights the link between financial success and a focus on health and well-being .

• An eighth ( 12 %) of highly resilient businesses are making ‘ improving staff well-being ’ their top priority over the next 12 months , and 35 % place it in their top three , in comparison to just 5 % and 22 % respectively amongst low resilience businesses

• Three times as many low resilience businesses have no well-being initiatives in place , compared to high resilience businesses

• Two fifths ( 40 %) of SME leaders have considered exiting their business in the past as a result of the impact on their mental health , but twothirds of SMEs leaders say they now have good mental health

• Taking time out and having screen-free time had the most meaningful impact on mental health for SMEs

• Business leaders take different approaches to improve mental health including therapy sessions , which is substantially more common amongst younger leaders , with one in five ( 21 %) 18 – 24s having done so compared to 0 % of over 65s

On the following pages , hear from our three experts about their top tips on where to spend your budget .

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