Growth is the main goal for nearly half of small businesses for 2025, global survey finds

TORONTO, Jan. 8, 2025 /CNW/ - One of the main goals for small businesses in the new year is growth, according to a global survey of SMEs.

Peninsula Group conducted a survey of 79,000 SMEs across 5 countries – Australia, Canada, Ireland, New Zealand, and the UK – to see what the top priorities and concerns were for employers in 2025.

The global survey revealed:

• Growth is the main business goal for 47.2% of SMEs; up from 44.7% this time last year. Businesses in Ireland and New Zealand are least optimistic, with only 36% and 34.1% respectively listing it as one of their top goals for the year ahead.
• While this may seem optimistic, almost a quarter of all respondents globally (23.3%) are just hoping to survive the year ahead, up from 20% this time last year.
• The UK and Ireland are least optimistic, showing an increase in the number of small businesses listing survival as their top goal. The UK jumped from 18.8% last year to 26% this year, while Ireland increased from 18.8% to 25.6%. By contrast, in Australia the number dropped from 22.4% last year to 19.7% this year.
• Rising costs are the top concern for 64% of all businesses, legislative changes came in second highest at 44% with labour shortages in third place at 24.3%. Contrast this to last year, when 84.2% of employers cited rising costs as their top concern, labour shortages came in second highest at 45.6% with retention in third place at 41.5%, and we can clearly see business confidence returning.
• Employers in the UK and Canada are most concerned about rising costs, with 87.6% and 77.5% respectively citing it as their top concern.
• Canadian companies most concerned about staffing levels, with labour shortages and employee retention cited by more than 40% of employers as top concerns
• Employers in Canada, New Zealand and the UK cite increased payroll costs as their biggest staffing challenge, while those in Australia and Ireland are most concerned about recruitment.
• Employees in Canada and New Zealand are most likely to get a pay raise in the year ahead; those in the UK and Ireland are least likely to.
• 61% of employers in New Zealand have used financial remuneration to aid retention
• In terms of working patterns, despite all the headlines surrounding changes in working patterns, it's clear that this is not a reality for many businesses. 79% of SMEs around the globe have made no changes to their working patterns in the last year.
• Over a quarter of employees globally (28%) have flexible working hours as standard, and 1 in 7 employers globally have made hybrid working a permanent policy. There is a global divide, however, when it comes to hybrid working, with 1 in 5 UK employers having made it a permanent policy compared to 1 in 10 Australian employers.
• Canadian and Irish employees are most likely to be in the workplace full time, 62% and 61% respectively

Peninsula Group Chief Operations Officer Alan Price says "The last few years have been incredibly difficult for small businesses around the world but, as we move into 2025, there is an air of cautious optimism amongst employers.

"While there are certainly challenging times ahead, and it would be remiss of us to gloss over the pressures that businesses are under, it's good to see both opportunity and optimism remaining high. However, global differences are clearly shown in our survey results, with the UK and Ireland entering the year ahead with key concerns around rising costs, legislative changes and business survival. Changes to employer National Insurance contributions are reflected by large spikes in UK respondent answers around rising costs, increased payroll and legislative changes.

"UK employers are also the least likely to be hiring in the year ahead, while employers in New Zealand are most likely to recruit.

"It's interesting to see that the majority of small businesses have made no change to their working patterns over the last 12 months, despite headlines suggesting that many businesses are making a return to the office. With that being said, it could be that larger employers have made changes to working patterns this year, with SMEs set to follow suit in 2025 – that remains to be seen.

"Hybrid working is here to stay, with 1 in 7 employers globally having made it a permanent policy, although there is a clear global divide in opinions on this. UK employers are most likely to embrace hybrid working, while Canadians are least likely. And flexible working remains the benefit that most employers are turning to when it comes to employee retention, coming out top for 4 out of the 5 countries we surveyed.

"Staffing continues to be a challenge for many employers, with increased payroll costs a top concern for 58.9% of all global respondents. This could impact on both recruitment and retention, as businesses look to balance the books. We've seen an increase in the number of employers turning to flexible working, mental health support, and reward and recognition to aid retention instead of financial remuneration.

"Based on our analysis of the survey results, Canada comes out on top as the best place to build a business in 2025, while employers in the UK and Ireland feeling least optimistic about the outlook for the year ahead."

Notes to editor

Download the full Canadian Employer Confidence Index 2025 here  

Interviews are available, please contact:

Sally Abu Samra – PR and Communications Manager at Peninsula Canada

T: 647-988-2137 | E: [email protected]

About Peninsula

Peninsula protects employers across the globe with employment law, HR, and health & safety services.

From small start-ups to well-known brands, we support tens of thousands of businesses with HR and health & safety. Business owners reduce their legal risk and save time with our expert advice, documentation, and more.
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SOURCE Peninsula Canada