Almost half (49%) of all small business owners in the UK are set to increase their prices as they look to battle rising costs, according to a new report from small business insurance provider Simply Business. 

The SME Insights Report saw over 1,000 small business owners from across the UK surveyed. It lays bare the truth of how SMEs are responding to the current economic climate – navigating an uphill challenge of rising costs, staggering levels of inflation and post-Covid-19 financial recovery.

The study found that small business owners are being forced to implement price increases, slow down plans for expansion and even stop any plans for new hires.

Yet despite all this, 71% say that they feel optimistic about their business’s prospects over the next six months. In the face of adversity, confidence levels among SME owners remain high.

Many SMEs are having to employ a number of survival tactics to make it through the next six months. With half (49%) of all small business owners set to increase their prices, one in five (21%) intend to raise prices by 6-10%. For almost one in 10 owners (7%), these increases could be by as much as 20%.

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