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How SMEs Can Overcome Challenges and Build Resilience?

Published

10th April 2025

How SMEs Can Overcome Challenges and Build Resilience?

Small and medium-sized enterprises (SMEs) are the backbone of the UK economy, yet they face an increasingly complex set of challenges. From late payments to rising operational costs, SMEs must navigate a dynamic business landscape while staying competitive. The SME Insights Report from Howden Insurance offers valuable insights into these issues while providing practical solutions to help businesses thrive.

Key Challenges Facing SMEs

The report highlights three major concerns affecting SMEs:

Customer Acquisition and Retention: In a competitive market, 64% of SMEs report difficulties in attracting and retaining customers. With rising customer expectations and the shift to digital-first experiences, businesses must prioritise customer experience while balancing limited resources.
Cost-of-Living Crisis: With 47% of SMEs struggling with inflation, wage pressures, and supply chain disruptions, managing costs has become a critical priority. Effective cash flow management and cost-control measures are essential to maintaining financial stability.
Competitor Pressure: For 41% of SMEs, standing out in a crowded marketplace is a significant challenge. Differentiation through innovation and value-driven offerings is key to maintaining a competitive edge.

Emerging Risks: Late Payments and Cybersecurity

Late payments remain a persistent issue, with 66% of businesses reporting disruptions to cash flow. For 42%, the impact is significant or very significant, highlighting the need for clear payment terms, automated invoicing tools and trade credit insurance to mitigate risks.

Cybersecurity is another growing concern for businesses across industries and of all sizes. While only 24% of SMEs rank it as a top challenge, over half (53%) have experienced cyber-attacks in the past year. The misconception that smaller businesses are less vulnerable is fading, making robust cybersecurity measures and insurance essential safeguards against financial loss and reputational damage.

Why the Right Insurance Matters?

Despite these risks, many SMEs remain underinsured in critical areas such as trade credit (3%) and cyber insurance. Engaging with an insurance broker early can help businesses secure tailored coverage that aligns with their unique needs, ensuring protection against evolving threats while optimising costs.

Take the Next Step

Understanding these challenges is the first step toward building resilience. To access expert insights and actionable strategies for overcoming obstacles, download the full SME Insights Report from Howden Insurance today. Equip your business with the tools it needs to thrive in a competitive market because success starts with being prepared.

Download the SME Insights Report now - https://www.howdengroup.com/uk-en/howden-scotland-annual-sme-report?utm_source=newsletter&utm_medium=email&utm_campaign=moraycoc

If you’d like more information, please get in touch with Mark Amos on 07394801577 or mark.amos@howdeninsurance.co.uk

Howden UK Brokers Ltd

Howden UK Brokers Ltd has a significant presence across Scotland and a commitment to expand our footprint further. With established offices in Edinburgh, Glasgow, Galashiels, Turriff and Perth, we recently opened an office in Elgin. We plan to open in other locations, to provide the highest level of service to SME and Corporate clients.

Platinum Partners

Abertay University

D.C. Thomson & Co. Ltd.

Dover Fueling Solutions UK LTD

Dundee City Council

Hillcrest Homes

Dains Accountants

Castle Water

SSEN Transmission

Invest in Angus

Circular Tayside

Abertay University

Abertay University

A modern university with a long history and a clear sense of our distinctive mission, highly regarded for our academic performance in areas with genuine relevance and impact on society and the economy, and with a community of talented students and academics who make us the success we are.

D.C. Thomson & Co. Ltd.

D.C. Thomson & Co. Ltd.

DC Thomson & Co Ltd is a private company and is one of the leading media organisations in the United Kingdom. The company publishes newspapers, magazines, comics and books. More recently, DC Thomson has expanded into the internet and digital developments including a major focus on genealogy.

Dover Fueling Solutions UK LTD

Dover Fueling Solutions UK LTD

Fuel dispenser manufacturer, exporting to most EU countries. Manufactured 70k plus dispensers of varying specification across Europe.

Dundee City Council

Dundee City Council

Dundee draws skilled workers from a 60-minute catchment population of 640,000 and has a local population of over 140,000. The availability of a large pool of highly skilled labour is a key feature in the Dundee economy. Flexibility in the labour force is currently more prevalent in Dundee than in Scotland as a whole. All forms of labour market flexibility - part-time, temporary employment, self-employment and shift work - are widely operational within the city. Labour force stability in the city is excellent, enabling companies to plan with confidence. Labour turnover levels are less than 5% and absenteeism averages 2%.

Hillcrest Homes

Hillcrest Homes

Hillcrest Housing Association was established in 1967 and is one of Scotland’s largest Housing Associations. They provide housing and support in Dundee, Edinburgh, Angus, Perthshire and Fife, with over 5500 good quality, well maintained homes at affordable rents. In each area of operation there are local offices with housing advice teams who can provide an immediate response to the customers.

Dains Accountants

Dains Accountants

Jack of all trades...Master of them too.
Whether you're starting off, established or looking for an exit we have all the services you could ever need. Get in touch to find out how we can help you feel more in control of your finances and spend more time doing what you love.

Castle Water

Castle Water

Castle Water is the leading independent water retailer in the UK. We supply hundreds of thousands of businesses, charities, and public bodies throughout England and Scotland. We provide water retail services to all types and sizes of organisation. We have expertise of working in hard to reach areas, ranging from dispersed rural sites to high density urban environments nationally.

SSEN Transmission

SSEN Transmission

We are SSEN Transmission, the trading name for Scottish Hydro Electric Transmission.

We are responsible for the electricity transmission network in the north of Scotland, maintaining and investing in the high voltage 132kV, 220kV, 275kV and 400kV electricity transmission network.

Our network consists of underground and subsea cables, overhead lines on wooden poles or steel towers, and electricity substations. It extends over a quarter of the UK’s land mass, crossing some of its most challenging terrain.

Our first priority is to provide a safe and reliable supply of electricity to our communities. We do this by taking the electricity from generators and transporting it at high voltages over long distances through our transmission network for onwards distribution to homes and businesses in villages, towns and cities.

Our operating area is home to vast renewable energy resources and this is being harnessed by wind, hydro and marine generation. Working closely with National Grid, the GB transmission System Operator, we also enable these electricity generators to connect to the transmission system by providing their connections and allowing the electricity generated by them to be transported to areas of demand across the country.

Scotland’s transmission network has a strategic role to play in supporting delivery of the UK and Scotland’s Net Zero targets. We’re already a mass exporter of renewable energy, with around two thirds of power generated in our network area exported to demand centres further south. By 2050, the north of Scotland is expected to need 40GW of low carbon energy capacity to support net zero delivery. For context, we currently have over 9GW of renewable generation connected in the north of Scotland.

As a natural monopoly, we are closely regulated by the GB energy regulator, Ofgem, who determines how much revenue we are allowed to earn for constructing, maintaining and renovating our transmission network in the north of Scotland. These costs are shared between all those using the transmission system, including generation developers and electricity consumers.

Following a minority stake sale which completed in November 2022, we are now owned 75% by SSE plc and 25% by Ontario Teachers’ Pension Plan Board.

As a stakeholder-led business, SSEN Transmission is committed to inclusive stakeholder engagement, and we conduct this at an ‘Advanced’ level as assessed by AccountAbility, the international consulting and standards firm.

Invest in Angus

Invest in Angus

The Invest in Angus team at Angus Council are here to help businesses invest, work, grow and thrive in Angus. We offer a one stop advice shop – whether it’s information on funding, skills, staffing support, land and property or practical business support.

We are focused on meeting the needs of businesses with a flexible, effective team that can respond quickly to the ever-changing business environment and to your specific request.

Circular Tayside

Circular Tayside

Businesses in Dundee and Angus are enjoying the benefits of the circular economy with the continuation of a partnership support programme. ‘Circular Tayside’ is a joint initiative being delivered by Zero Waste Scotland, Dundee and Angus Chamber of Commerce and Perthshire Chamber of Commerce.

Circular Tayside aims to help local businesses in the transition towards a circular economy and offers access to Zero Waste Scotland support that includes free workshops, business consultancy and grant funding. With the carefully tailored range of support, we can help businesses at every stage, from idea generation, to market analysis and funding for project development.

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