According to research from the Federation of Small Businesses (FSB) conducted for its Q3 Small Business Index, 13% of respondents are looking for ways to exit their business, this being the highest percentage recorded since it began measuring in 2012.
The survey, conducted in mid-July with 1,230 FSB member respondents, also pointed to lower business optimism among small firms, with rising costs and a weaker UK economy blamed, along with businesses struggling with spiraling business rate costs.
However, optimism in the manufacturing sector, which includes print, was up on last year’s figure, potentially due to a weak pound leading to an increase in overall international sales.
70% of those surveyed reported a rise in operating costs, with labour costs, taxation and rent the main three causes blamed for the increase.
FSB national chairman Mike Cherry said: “A record proportion of business owners currently expect to downsize, sell or shut up shop, while rent and taxation are frequently mentioned as causes of increased costs.
“We need to see more support in this space - that includes ending enforcement of the ridiculous 'staircase tax'."
The recently coined “staircase tax" refers to businesses having to pay extra business rates because they have premises divided by a staircase. PrintWeek reported earlier this year on printers especially in the south struggling with soaring business rates following an April rates revaluation, while BPIF chief executive Charles Jarrold told PrintWeek that there are fears that if the Retail Price Index (RPI) increases over the next few months this will have an effect on the business rates multiplier.
Cherry also called on the chancellor Philip Hammond to “extend a lifeline” in his Budget this autumn.
“In such a difficult trading environment any new tax grabs or loss of reliefs for entrepreneurs would exacerbate existing challenges,” he added.
Jarrold also emphasised the need for businesses to think in the medium-term about succession planning.
"If they do feel at some point in the not-too-distant future they want to make decisions about ownership, this is a key issue really," he said.
"It's difficult to draw conclusions from the research but I think that it is a snapshot in time, there is clearly a level of uncertainty around the economy at the moment and that will affect how people feel about their businesses."
Paul Holohan, chief executive of Richmond Capital Partners, which provides business advice to the printing and packaging industries, said he was not surprised by the research and that it rings true in relation to print.
“My experience would lead me to believe that there are still a lot of people owning businesses either not prepared to go to the next stage of investment, which can be costly in print, or maybe they haven’t got sons or daughters who want to do what they’ve done,” said Holohan.
“This is an accumulation of things: red tape, business rates, costs going up, insurance, things like that, all those accumulate and mount up and it puts people off.
The survey also found the proportion of firms applying for credit was at 12%, its lowest level since 2014, while 27% expect to increase investment in the next three months, a fall on Q2’s figure.
