Small and Medium Enterprises Manage to Thrive Amidst Harsh Economic Conditions
A new study by Purbeck Insurance Services has shed light on the current trends among UK Small and Medium-sized Enterprises (SMEs). The research suggests that SMEs are prioritizing employee wellbeing and flexible work arrangements, while sustainability and carbon footprint reduction efforts appear less prominent.
Employee Wellbeing
UK SMEs are increasingly adopting flexible working models, such as remote work, hybrid schedules, and core work hours, as a key strategy to improve employee work-life balance and wellbeing. This shift aligns with findings that 61% of UK workers prioritize work-life balance over higher pay, making flexible work a critical factor for attracting and retaining talent.
However, mental health support remains limited and stigmatized in many SMEs. Only a small percentage of UK employers offer mental health days, with 85% not planning to introduce them in the near future. There remain cultural barriers and leadership skepticism around mental health initiatives, posing challenges to deeper wellbeing integration.
Carbon Footprint Reduction and Sustainability
The latest data and discussions from the study do not provide significant information indicating that UK SMEs are widely advancing carbon footprint reduction or broad sustainability initiatives as a core priority in 2025. SME leaders are primarily focused on maintaining business growth amid economic uncertainty by managing people, costs, and technology. There is no clear evidence from these results of large-scale sustainability action or carbon reduction efforts as a leading SME trend.
However, it's worth noting that one in three SMEs is encouraging their staff to adopt sustainable procurement practices, and almost two-thirds are introducing initiatives to reduce their carbon footprint. SMEs run by younger people aged 25-34 are particularly committed to reducing their carbon footprint, with 64% making such efforts.
Networking Event for SME Lenders
Purbeck Insurance Services, the only provider of personal guarantee insurance to small business owners in the UK, is hosting a free networking event for SME lenders titled PGI Business Link on June 4th, 2023, in Birmingham. The event aims to bring professionals involved in SME lending together to share best practices and discuss the growing demand for finance from SMEs.
In the meantime, Purbeck Insurance Services continues to advocate for the importance of securing personal guarantee insurance when securing a new personal guarantee backed loan, to protect the business owners' and directors' personal finances in the unfortunate situation of a business failure.
The study by Purbeck Insurance Services indicates that UK SMEs are improving their ability to scale rather than just survive. However, the emphasis on employee wellbeing and flexible work, while sustainability efforts and carbon reduction appear less prominently discussed or prioritized.
[1] Purbeck Insurance Services (2023). SME Trends Report 2025. [2] CIPD (2021). Work-life balance and wellbeing. [3] Mental Health at Work (2022). Workplace Mental Health Report. [4] Starbucks UK (2022). Our Benefits.
- Despite the focus on employee wellbeing and flexible work arrangements, the study by Purbeck Insurance Services reveals a limited provision of mental health support in UK SMEs, with only a small percentage offering mental health days.
- Pertaining to sustainability and carbon footprint reduction, the report indicates that UK SMEs are making strides in encouraging sustainable procurement practices, but broad sustainability initiatives and carbon reduction efforts seem less prominent as a core priority in 2025.
