Worse Than Covid? Over Half Of UK Small Businesses Fear Collapse

As we move further into 2025, the UK’s small and medium-sized businesses (SMBs) are facing a perfect storm. Soaring costs, tax hikes, supply chain uncertainty, and shifting customer demand have brought many companies to their knees. According to a new report from Dext, over half (54%) of SMBs say just one more major cost hike could shut them down... a stark warning that today’s economic climate may be even more volatile than the Covid-19 crisis.

At AGS Group, we understand this pressure all too well. Especially in sectors like hospitality, retail, and food service, facilities management (FM) can quickly become an overwhelming burden — draining time, energy, and money that could be better spent growing your business.

Businesses in Survival Mode

The data paints a sobering picture:

• 46% of UK SMBs have experienced serious cash flow issues or needed emergency funding.

• 27% have paused hiring or cut staff entirely.

• 53% say strategic planning has become virtually impossible.

• Nearly one in four have halted growth plans altogether.

“We’re past resilience. These businesses are stuck in survival mode,” said Sabby Gill, CEO of Dext. “Without urgent support, we risk losing a generation of entrepreneurs and the backbone of the UK economy.”

Admin Overload: A Hidden Growth Killer

One of the key challenges highlighted in the report is not just economic, it’s operational.

Over a quarter of business leaders spend 21–40+ hours per month on financial and operational admin. That’s an entire working week each month lost to tasks that could (and should) be outsourced or streamlined. The result?

• 40% describe admin as “soul-destroying”

• 38% say it kills their energy for growth

• 35% admit to missing major business opportunities because of it

• Nearly half (48%) believe they’d be more effective leaders without the admin burden

At AGS Group, this is where we step in.

How AGS Group Supports Struggling Businesses

We specialise in helping hospitality and retail businesses streamline their facilities management. From cleaning, maintenance, and compliance to repairs and specialist services, we take day-to-day FM challenges off your plate so you can focus on keeping your business alive, and growing.

Whether you're managing multiple sites or just one busy location, our team becomes an extension of yours. We ensure your spaces are safe, clean, functional, and ready to welcome customers... without eating into your already-limited resources.

No One Is Immune: A Nationwide Challenge

The impact of this economic pressure is felt differently across the country:

• Retail, hospitality, and arts sectors are most likely to say today is worse than Covid

• Yorkshire & Humber businesses are leading in resilience, with 71% still prioritising growth

• Newer businesses (1–2 years old) are struggling most but show the most potential if they can survive

• Larger SMBs (100+ employees) are under even deeper strain, with many questioning their future

No matter your size or sector, the message is clear, you need support, and you need it now.

Bottom Line:

If your team is overstretched, your maintenance backlog is growing, or you simply don’t have time for the day-to-day management of your sites, let us help. AGS Group is already trusted by major brands in the UK hospitality and food sectors, and we’re here to support SMBs through the toughest of times.