Dentists cautiously optimistic about 2024
We recently conducted our latest Business Barometer research, which examines current Dental sector trends and the view of business owners about a range of issues, from the missed business opportunities to predicted business performance and acquisitions.
In this piece, we get under the skin of the data to find out more…
Appetite for investment
The appetite to invest in their practice among Dentists is very strong, with 88% of respondents aiming to seek funding for investment in the next 12 months. This closely tracks the 84% average for the professions sector as a whole.
Missed business opportunities
At 65%, the number of Dentists who have missed business opportunities because of a lack of available funding is significantly higher than in many other sectors.
This result highlights the importance of business owners to investigate the different funding options available to them.
Economic outlook
From a macro-economic perspective, Dentists are generally optimistic about the UK’s economic prospects, with results in line with the views of business owners in the wider professions sector.
Predicted business performance
Predictions about future business performance are – considering the various challenges business owners have faced over the past few years – positive, and points to the resilience of the Dental sector.
Half of Dentists who responded expect their practice to expand during 2024, compared to just 5% who think they’ll contract; the remaining 45% anticipate they will ‘stay the same’.
Acquisitions
66% of Dentists have considered making an acquisition to grow their business or see it as a way to own their first practice.
And, according to 47% of Dentists, they have seen a rise in the number of acquisitions in the past 12 months – 29% think there’s been a fall while 22% say there’s been no change with the rest being unsure.
Encouragingly, most Dentists are confident about both where to go for funding (74%) for an acquisition and how to arrange the necessary funds (62%).
Artificial Intelligence (AI)
While Dentists think AI will influence their profession in some way, they’re still largely unclear of its likely impact on their business:
- A large impact - 25%
- Some impact - 57%
- Not much of an impact - 13%
- No impact at all - 4%
- Unsure - 2%
Despite 18% of respondents being ‘very concerned’ and 50% ‘somewhat concerned’ about the rise of AI, 63% are of the opinion it presents opportunities for growth and employment.
A further 51% feel the rise of artificial intelligence will lead to large scale job losses in the sector.
Cost of borrowing
Over half (52%) of Dentists have seen their cost of borrowing increase, causing 50% to change their funder, and 65% to increase their prices.
More positively, 61% of Dentists think interest rates have peaked, and 36% are considering alternative forms of finance to mitigate their increased costs.
Customer service
Having a named, personal contact as their funder is important for 96% of Dentists, who rate cheapest rate as the key differentiator.
Dentists say the most important factor that determines good customer service by a funder is ‘the willingness to provide funding through all economic cycles’. This is followed by ‘Expert knowledge of my profession’ (20%) and ‘availability after hours to respond to queries’ (16%).
Business growth
Looking back over the past 10 years, the biggest inhibitors of growth for Dentists have been:
1. Inflation
2. Energy costs
3. Interest rate rises
4. Skills shortage
5. Influence of Brexit
6. Materials shortage
Dentists’ top five business concerns are:
1. Energy costs
2. Inflation
3. Interest rates
4. Cash flow
5. Tax / VAT
Methodology:*
All figures, unless otherwise stated, are from a Censuswide survey conducted in January 2024. The survey canvassed the opinion of over 1,200 senior members of the professions across the UK on a range of issues affecting their businesses.
