What Are Business Owners Worried About For 2023?

There is no doubt that 2022 has been an incredibly challenging year for businesses in many countries. Companies and organizations across several sectors have struggled to stay afloat amid rising operating and running costs, the conflict in Ukraine rumbles on, and some are still recovering in the aftermath of the pandemic. As the new year dawns, we’ll discuss what business owners are worried about for 2023. 

Cybersecurity

A 2022 poll by the Chartered Institute of Internal Auditors in the UK suggests that cybersecurity is the most significant risk cited by 82% of organizations. Cybercrime poses a broad spectrum of risks for companies and public organizations, including financial losses, a damaged reputation, and loss of consumer trust and confidence. 

It is often high-profile security breaches impacting multinationals and giant corporations that hit the headlines, but studies show that small and medium-sized businesses are the most common target. Small businesses are often considered easy prey for hackers because they lack the resources and robust protection and monitoring tools that larger corporations implement. A 2022 report suggests that more than 30% of small businesses have holes in their defenses. It is easier for criminals to penetrate weak security systems. 

Cybercrime has become more common in recent years and there was a spike in activity during the pandemic. As well as becoming more frequent in number, attacks are also more sophisticated than in previous years. Most breaches occur as a result of human error. Phishing scams, for example, have never looked more realistic. To combat rising levels of crime, businesses must recognize the importance of protecting and securing data and take proactive steps to prevent attacks and minimize the risk of downtime and disruption. Providing employee training, working with managed IT service providers, implementing robust workplace policies and procedures, and using secure networks can make a difference. Communication is also key. Employers should talk to their teams about the risks of cybercrime and ensure that they take responsibility for their actions and behaviors.  

Recruitment, talent management, and retention

There is a global skills shortage and companies and organizations across multiple sectors are struggling to fill vacancies and find suitable candidates. There are two key challenges for business owners: finding people who have the relevant skills and keeping hold of talented employees. Studies show that people are moving jobs more frequently than ever before, making retention a problem for a growing number of employers. 

There are several factors to consider when analyzing recruitment and retention issues. Firstly, employers should be aware of what employees want. This helps companies to attract candidates but it also plays a part in boosting retention rates. Increasingly, employees favor well-being, flexibility, and work-life balance over salary, but an attractive employee benefits package remains an important incentive. Secondly, employers should be proactive in outlining and championing values and a healthy, inclusive company culture. This is particularly important for younger employees. Thirdly, employees want to be valued and respected and they want opportunities to develop and progress. 

Finding the right candidates for job roles is a critical task for employers. At a time when skills are in demand and there are vacancies, employees have the upper hand. They can negotiate with business owners and they often have options in terms of job offers. For employers, it’s important to implement effective recruitment strategies and identify the best candidates. Protect the business and avoid wasting time and money by carrying out background checks and using services to prevent certificate fraud. Use interviews and face-to-face meetings to get to know people before you decide who to appoint. Character and personality can be as important as experience in many cases, particularly where individuals are required to work as part of a team. 

Diversity and inclusivity are vital to creating successful, cohesive modern workplaces. As cultures evolve and societal attitudes change, it’s crucial for businesses to adapt and recognize changes in behaviors and expectations. If you don’t move with the times, you run the risk of losing employees and customers. 

Geopolitics and global economics

2022 has been a year of anxiety-inducing headlines for businesses and their customers. The conflict in Ukraine has impacted populations across the globe and put international relations firmly under the spotlight. There are tensions between Russia and other countries and relationships between China and other nations are fragile. Most economies are still trying to rally in the wake of the Covid-19 pandemic and the conflict has hampered efforts to rebuild and recover due to rising costs and global economic uncertainty. 

One of the main problems for businesses going into 2023 is unpredictability. Nobody knows what is going to happen in the future and this makes preparing in advance very difficult. 

Image Credit: Pixabay

Rising costs

Rising costs are one of the most alarming threats for businesses, especially small companies. In many countries, inflation rates are high and the cost of buying essentials has risen steeply in the last 12 months. Businesses are paying much more to provide products and services for customers at a time when shoppers and clients can’t afford to pay more. This makes it difficult for businesses to increase prices to balance the books because they risk losing customers. Small businesses may need to act before larger organizations, which puts them at a disadvantage. If they increase prices and are undercut by bigger brands, customers may switch. 

Many businesses may be able to cope with a temporary spike in running costs, but it could be some time before prices fall and inflation is under control in countries like the UK and the US. Economic instability makes it challenging for companies to identify effective strategies and sustain survival techniques. 

Climate change

During the summer of 2022, the weather dominated the headlines on a global scale. Record temperatures were recorded across the world and natural disasters became more commonplace. In the US alone, there were fifteen weather and climate incidents reported up to October 1st. In total, these natural disasters caused $1 billion worth of financial losses. 

Studies show that weather incidents are becoming more common, and climate change has climbed the rankings in terms of issues that worry business owners. Businesses can make an incredible contribution to efforts to protect the planet, but a collective effort is required.

There are several measures and steps organizations can implement and employ to reduce carbon emissions and waste, champion sustainability, and encourage positive, eco-friendly behaviors in employees, customers, and clients. One key consideration is energy consumption. Reducing energy consumption has two primary benefits. Firstly, it is beneficial for the environment. Secondly, it saves businesses money. Energy prices have risen in 2022. Lowering consumption will reduce spending. The best ways to reduce energy usage are to be more frugal and maximize efficiency. Simple things like switching lights off and turning appliances off at the socket can make a big difference. Insulating business premises, using smart technology, and swapping old light bulbs and appliances for energy-efficient alternatives can also save energy and money. 

Another important consideration for companies is sustainability. Embracing sustainable ways to operate can have a positive impact on the environment while also helping businesses to enhance their brand image and connect with new customers. More than 80% of consumers want to buy from brands that align with their values. Look for greener ways to create, distribute and ship products, use sustainable materials and work with and support brands and organizations that champion environmental initiatives. 

New technology

New technology offers amazing opportunities for businesses, but it can be a double-edged sword. For small businesses, in particular, it’s difficult to keep pace and gain a competitive advantage. The cost of investing in new equipment and updating technologies is a concern, but it’s also difficult for organizations to balance technology and digitalization with maintaining a human side. Innovations like live chat are popular among some consumers, including younger shoppers and customers, but many people still prefer to talk to a person rather than a bot or a machine. This is particularly relevant to people who have questions or concerns about their health and those who are trying to contact a financial organization. Conducting market research and asking customers for feedback and suggestions is an excellent way to gauge reactions. Tailor your strategy to suit your client base and your business objectives. There are ways to save on new technology, including hiring equipment rather than buying and purchasing second-hand tools and machinery. It’s also beneficial to weigh up the short and long-term savings of using new technology.

Image Credit: Pexels

2022 is drawing to a close. It has been an unpredictable, challenging year for many businesses across multiple sectors, and the future is uncertain. Costs are rising, cybercrime has become more common, and Ukraine's conflict is still raging. As business owners look to 2023, they face significant challenges and obstacles. Risks include cyber attacks and security breaches, increasing costs, geopolitical and economic uncertainty, and difficulties linked to climate change and technological advances. A diverse mixture of hazards, risks, and hurdles makes planning ahead with certainty virtually impossible, but a new year always brings new opportunities.

(Disclaimer: Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)