Member Article

Cashflow causes stress for Manchester’s businesses

New research from American Express reveals small businesses in Manchester are finding it difficult to manage their work-induced stress. Over a third (37%) of senior figures admitted to struggling to control their workplace stress. For many of these small and medium enterprises (SMEs) their financial situation is a worry, with 71% admitting to losing time due to dealing with their money problems.

Taking control of their finances is an issue for SMEs in Manchester, with 29% admitting to being concerned about their lack of revenue. A further 19% were most concerned about the cash flow of their small business. They aren’t without reason for this concern as over one in five (22%) of small business personnel admit to having missed financial deadlines because of cash flow issues.

The research found that people had different methods for responding to stress. Over a quarter (27%) of SMEs used bank overdrafts to relieve some of their financial stress. While business leaders in Manchester are turning to exercise to relieve their stress, with 17% opting to take a walk, go to the gym, or play a sport to take the edge off their worries. Furthermore, one tenth (10%) have taken up meditation or yoga to combat the pressures of running a small business.

Manchester isn’t alone in their financial worries, with almost a quarter (24%) of small business professionals nationally experiencing symptoms of stress. Finance induced stress is distracting British SMEs from being able to grow their businesses, with nearly half (46%) of senior decision makers in Britain admitting money flow is distracting them from growth related activities like product development and marketing. Furthermore, one in five (18%) say keeping on top of financial commitments is taking their focus off chasing down new business opportunities.

Challenges with fulfilling financial obligations can have an impact on supply chain relationships as well. A third (30%) of SMEs who have missed a payment deadline have had a supplier withhold goods or services and over a quarter (28%) have had their relationship with a supplier they depend on tested. Missing payments can also cause costs to add up for SMEs, with 35% having to pay a fee for doing so.

Colin O’Flaherty, Vice President, Global Commercial Services at American Express said: “Stress can be a huge issue for SMEs, and it’s great to see Manchester’s small business personnel turning to exercise to relieve some of theirs. But taking control of finances can help to alleviate stress in both their personal and professional life. It doesn’t need to be as challenging as many SMEs might expect and doing so will free up their time to focus on growing their business.

“Breaking the cycle of late payments should remain a priority for SMEs to avoid problems being passed down the supply chain. They should definitely explore the full range of financial support and tools at their disposal to crack the cash flow conundrum”.

This was posted in Bdaily's Members' News section by American Express .