The Hiscox 2007 Risk Barometer reveals that SMEs can see clear challenges ahead. 

Business taxation was the primary concern cited in the poll, with four out of five respondents claiming that their number one issue is the burden of taxation.

Pressure to increase sales has catapulted from fifth to second place in the survey, while three quarters of respondents focused upon the effects of the economy as cause for concern. 

Worries around cash flow have also heightened and this is now ranked the sixth top issue. Tellingly, clients refusing to pay also featured in the top ten concerns for the very first time, since this survey has been conducted.

John Heaney, UK Speciality Commercial Underwriting Manager at Hiscox comments: "Obviously CGT is a hot topic for SME owners right now. The ending of taper relief and the increase in CGT is a potential hindrance to entrepreneurial endeavour."

"Our research shows an anxiety by small business owners towards taxation in general. The cost of running a business has increased, reflected in rising local business rates and the increasing compliance cost of tax regulation. Overall, the Risk Barometer shows that 40% of SMEs’ top concerns are issues unrelated to their core business activities."