Pharmacists cautiously optimistic about 2024

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 Pharmacists is very strong, with 83% of respondents aiming to seek funding for investment in the next 12 months. This closely tracks the 84% average for the professions sector.

Missed business opportunities

At 51%, the number of Pharmacists 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, Pharmacists 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 Pharmacy sector.

Almost half (47%) of Pharmacists who responded expect their practice to expand during 2024, compared to just 5% who think they’ll contract; the remaining 48% anticipate they will ‘stay the same’. 

Acquisitions

63% of Pharmacists 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 Pharmacists, they have seen a rise in the number of acquisitions in the past 12 months – 25% think there’s been a fall while 24% say there’s been no change with the rest being unsure.

Encouragingly, most Pharmacists are confident about both where to go for funding (64%) for an acquisition and how to arrange the necessary funds (59%). 

Artificial Intelligence (AI)

While Pharmacists think AI will influence their profession in some way, they’re still largely unclear of its likely impact on their business:

• A large impact - 22%
• Some impact - 59%
• Not much of an impact - 16%
• No impact at all - 4%
• Unsure - 1%

Despite 19% of respondents being ‘very concerned’ and 40% ‘somewhat concerned’ about the rise of AI, 56% are of the opinion it presents opportunities for growth and employment.

A further 54% are looking to incorporate artificial intelligence into its business processes.

Cost of borrowing

Half of Pharmacists have seen their cost of borrowing increase, causing 63% to increase their prices.

More positively, 59% of Pharmacists think interest rates have peaked, and 54% are considering alternative forms of finance to mitigate their increased costs. 

Customer service

Having a named, personal contact as their funder is important for 94% of Pharmacists.

The most important factor that determines good customer service by a funder is expert knowledge of their industry, according to a quarter of Pharmacists. This is followed by ‘the willingness to provide funding through all economic cycles’ (22%) and ‘being able to speak to a real person when I have a question’ (21%).

Business growth

Looking back over the past 10 years, the biggest inhibitors of growth for Pharmacists have been:

1.      Inflation

2.      Interest rate rises

3.      Energy costs

4.      Skills shortages

5.      Material shortages

6.      Influence of Brexit

Pharmacists’ top five business concerns are:

1.      Energy costs

2.      Interest rates

3.      Inflation

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.

Find out more by visiting our SME Data Hub