Only 24% of SME sector companies have planned an annual budget, every fourth company does not plan it at all, and the vast majority (96%) express concern about conducting business in 2024 - this is the result of a study conducted by Kaczmarski Group. The main concerns are about the rising costs of doing business.
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In a study conducted by IMAS International for Kaczmarski Group on a group of 620 companies from the SME sector, it was revealed that many entrepreneurs do not use a uniform financial planning model. These results shed light on the challenges in financial management faced by micro, small and medium-sized enterprises.
Long-term financial planning is more common among construction and manufacturing companies and larger corporations than in sole proprietorships. Among medium-sized enterprises (50-249 employees), almost 30% have annual budget plans. However, in micro-enterprises (up to 9 employees), as many as 45% do not use long-term planning, in contrast to only 5% in medium-sized companies.
- The most, 28 percent of companies, have a budget planned for half a year. Only 24% have already planned the whole year, and every fourth company does not do budget planning at all, but makes decisions from day to day - comments Adam Łącki, President of the National Debt Register of the Economic Information Bureau.
- Meanwhile, it is precisely the forecasting of revenues and costs that determines the financial security of the company. Without such a comparison, it is difficult to make key business decisions at all. It is even more difficult to set goals and directions for development. It's like drifting in the ocean without a map - adds Łącki.
Łącki also emphasizes that the last years have been a challenge for almost all areas of the economy, so companies expect that 2024 will not be easy for them either.
- Only 4% of them are not worried about what the coming months will bring. The construction industry is particularly concerned, i.e. a sector that has indeed had difficult experiences - Adam Łącki, quoted in the announcement, is convinced.
The President of KRD emphasizes that the construction industry, which is particularly affected by difficulties, is afraid not only of rising costs, but also of a decrease in the number of customers, sales and profits. In this industry, debts increased by 13% within a year, reaching PLN 1.5 billion.
In addition to higher expenses and labor costs, SMEs also fear a decrease in the number of customers, sales value and profits, which affects 38% of respondents. Trade and services also express a high level of concern in this area.
Many SMEs, in the face of these challenges, take preventive actions such as monitoring receivables and verifying business partners before starting cooperation. This is particularly true for small companies in the construction and manufacturing sector, as well as medium-sized enterprises.
Other strategies include leasing, monitoring the financial situation of customers, collecting prepayments, debt collection and installment purchases to better manage their finances.
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