Vets cautiously optimistic about 2024
We recently conducted our latest Business Barometer research, which examines current Veterinary sector trends and the view of business owners about a range of issues, from missed business opportunities to predicted business performance and artificial intelligence.
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 Vets is very strong, with 89% of respondents aiming to seek funding for investment in the next 12 months. This is higher than the 84% average for the professions sector and considerably higher than the 73% achieved for the wider SME community.
Missed business opportunities
At 65%, the number of Vets 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, Vets 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 Veterinary sector.
Over half of Vets who responded expect their practice to expand during 2024, compared to just 3% who think they’ll contract; the remaining 41% anticipate they will ‘stay the same’.
Acquisitions
Over two-thirds of Vets (68%) have considered making an acquisition to grow their business or see it as a way to own their first practice.
And, according to 46% of Vets, they have seen a rise in the number of acquisitions in the past 12 months – 24% think there’s been a fall while 28% say there’s been no change with the rest being unsure.
Encouragingly, most Vets are confident about both where to go for funding (77%) for an acquisition and how to arrange the necessary funds (77%).
Artificial Intelligence (AI)
While Vets think AI will influence their profession in some way, they’re still largely unclear of its likely impact on their business:
- A large impact - 29%
- Some impact - 55%
- Not much of an impact - 14%
- No impact at all - 1%
- Unsure - 1%
Despite 24% of respondents being ‘very concerned’ and 42% ‘somewhat concerned’ about the rise of AI, 60% are of the opinion it presents opportunities for growth and employment.
A further 47% feel the rise of artificial intelligence will lead to large scale job losses in the sector.
Cost of borrowing
Over half (54%) of Vets have seen their cost of borrowing increase, causing 49% to change their funder, and 72% to increase their prices.
More positively, 60% of Vets think interest rates have peaked, and 62% 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 Vets.
The most important factor that determines good customer service by a funder is expert knowledge of their industry, according to a quarter of Vets. This is followed by ‘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 Vets have been:
1. Inflation
2. Energy costs
3. Interest rates
4. Skills shortages
5. Materials shortages
6. Influence of Brexit
Vets’ top five business concerns are:
1. Energy costs
2. Inflation
3. Lack of skilled staff
4. Interest rates
5. Cash flow
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.
