Business costs have continued to rise during 2013, with energy costs still the most commonly seen increase among small businesses, according to the latest research from the Forum of Private Business.
The Forum's latest Cost of Doing Business survey, carried out among its members, shows firms are still facing an uphill battle to make ends meet, despite positive signs of an economic recovery.
The results showed that 94% of businesses have seen an overall increase in their business costs, while 87% of businesses reported an increase in energy costs, 83% in transport costs, 78% a rise in marketing costs, and 69% a rise in the cost of raw materials/stock.
Worryingly, the report also identified that 41% of small business owners admitted to being unable to pass any rising costs onto customers, forcing them to cut their own costs to keep prices static. Just 2% were able to pass on costs in full.
While annual inflation has continued to fall from 3% to 2.7%, the research also found that prices have continued to rise faster for micro, small and medium-sized employers at 6%, although this is less than the 6.7% figure reported by the Forum last year in research into business costs, suggesting things are improving – albeit slowly.
Alexander Jackman, the Forum's head of policy, said: "The major reasons for increases in prices are predominantly down to transport and energy prices rising, coupled with the continued weakness of sterling for importers.
"The economic outlook may be better but costs still remain an issue for our members and a key focus of our lobbying and support services."
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