Leaders of UK SMEs share these eight challenges in 2025

As business leaders, problems faced can feel like they’re ‘just ours and ours to solve.’ To challenge this feeling, we asked AI to list the key searches performed by UK SME leaders in 2025. What came back was this list of problems:

Rising costs and margin pressure.
Tax and regulatory burden / uncertainty.
Cash flow and access to finance.
Labour and skills shortages.
Technology and cybersecurity threats.
Unstable and changing consumer demand; unstable economic conditions.
Supply chain disruption due to global geopolitical risks.
Standing out, marketing and visibility.

It’s a head-spinning set of challenges that get in the way of ‘just doing business.’ Clearly, to restore the fun, something’s got to change!

In this blog, we breakdown each of these challenges, outlining how lower cost remote employees (skilled and quality people) can reduce stress for SME leaders and restore the reasons they first got into business.

Before we begin let’s address the elephant in the room. Outsourcing to the Philippines with Yempo Solutions DOES NOT mean handing off entire processes and losing control. Our model is that individuals that you’ve interviewed become dedicated members of your team. You stay in control. We manage legal compliance, HR, IT and cyber, office space, pay and benefits. You pay one agreed and predictable monthly invoice.

‘We carried out seven interviews and were able to hire five people. They are some of the most amazing staff we’ve got.’ – Aran F, CTO, Yempo Solutions client.

1. Rising costs and margin pressure

As multi-percentage increases hit salaries, energy costs, utilities, rent and (in some cases) raw materials, there’s a real squeeze on margins.

In better times, rising costs are passed through to consumers (via B2B and eventual B2C connections). But the current consumer squeeze requires cost sharing between businesses and consumers.

How outsourcing to the Philippines can restore margin.

Every business uses IT. Every business has accounts. Most SMEs require business support staff. Dedicated to you, IT, accounting, and business support team members that you hire via Yempo are 70% cheaper than UK equivalents.

For every £100 you currently spend on employment costs, engaging Yempo Solutions talent lets you retain £70. It’s a far bigger restoration of margin than what’s lost to rising costs.

‘Yempo provides us with a very stable workforce that’s far lower cost to hire than locally.’ – Ron M., Yempo Solutions client.

2. Tax and regulatory burden / uncertainty

April ‘25s National Insurance increase hit most UK SMEs. And, with a government that prefers tax increases to spending cuts, the upcoming UK budget is likely to deliver additional hits.

How outsourcing to the Philippines mitigates tax uncertainty.

Building a remote team in the Philippines spreads the risk of tax uncertainty AND increases cost certainty. Our offshore teams come with agreed monthly costs that cannot change without your agreement.

And, as we’ve said before, 70% salary savings vs UK costs puts money in coffers to fund essential local personnel.

‘Even billing is simple and transparent. There are no hidden fees.’ – Ron M., Yempo Solutions client.

3. Cash flow and access to finance

Growing a business is always a balance between profit, investment, and cash flow. In 2025, it’s also a balance between relatively high interest rates and margins.

How outsourcing to the Philippines improves cash flow and investment funds.

Many of our clients build IT, accounting, and business support teams with us to free up funds for investment. They want to fund new products, solutions, marketing, local team members. They can avoid debt and interest payments.

Once again, 70% salary savings vs UK costs helps them to achieve these goals.

‘Our business benefits from significant productivity gains vs. hiring in-country.’ – Russell K., Yempo Solutions client.

4. Labour and skills shortages

SME leaders tell us that they face a constant and time consumingcycle of hiring / team churn. This isn’t a problem that they can fix unless they pay over the odds. Why? The UK has a growing shortage of IT skills. The cost of accounting personnel is rising. Minimum wage rises have added to the cost of business support talent.

How outsourcing to the Philippines resolves labour and skills shortages.

What’s not well known is that the Philippines has a huge population of highly skilled IT and accounting personnel. English skills are excellent. UK business hours match the popular Philippines mid shift.’ IT and accounting platforms are shared with the UK. There are no barriers to collaboration.

‘Yempo Solutions gives us a dedicated, reliable, consistent team with a great work ethic that’s looked after well.’ – Andrea H., Yempo Solutions client.

5. Technology and cybersecurity threats

Marks and Spencer, Jaguar Land Rover, Co-Op…2025 is strewn with cyber security disasters. It’s no wonder that every SME leader worries about keeping up with technology and cybersecurity threats. But it’s another activity that adds cost to often squeezed accounts.

How outsourcing to the Philippines addresses technology and cybersecurity threats

Fact. Reputable Philippines outsourcers cannot operate without constant investment in technology and cybersecurity. It’s the very basis of trust between Yempo Solutions and clients. So, it’s a key priority and non-negotiable cost for us.

Clients can confidently lower costs by building remote teams in the Philippines and (if they so wish) use salary savings to fund UK tech and cybersecurity investments.

‘Yempo provides the confidence that IT, data protection, and cyber security are up to our required standards.’ – Katie W., Yempo Solutions client.

6. Unstable and changing consumer demand; unstable economic conditions

Every SME has a core team that is the essence of the business. Every SME leader wants to protect this team from economic downturns so that they are ready to ‘go again’ when better times return. But this can be hard when sudden dips challenge cash flow.

How outsourcing to the Philippines addresses unstable economic conditions

Lower cost remote teams in the Philippines enable SME businesses to build cash buffers that protect them from uncertain economics.
Remote teams that you build with us are highly flexible, at speed. If there’s a dip, then you’re not tied into a long-term contract. If there’s an upturn, then you can rapidly add new capacity to your team.

‘Yempo recruits for us based on our projected demand.’ – Kirsten F., Yempo Solutions client.

7. Supply chain disruption due to global geopolitical risks

As Trump has proven, it’s possible to disrupt supply chains overnight. And SMEs aren’t immune. At speed, they need buffers against Trump black marker pen (and other global actors).

How outsourcing to the Philippines addresses supply chain disruption

There’s a bit of a theme developing…lower cost remote talent in the Philippines…70% savings…cash in the bank as a buffer against change…fast adjustment of team sizes to reflect business realities…sleep well at night.

‘Yempo gives us the senior expertise that other outsourcers cannot provide.’ – Ron R, Yempo Solutions client.

8. Standing out, marketing and visibility

Marketing is expensive, especially for SMEs operating in highly competitive markets. There are no easy short-cuts. The proven marketing rules? If your brand share of ‘voice’ in a market is bigger than its current share of market, then growth arrives. Too little spend? Growth is slower than the market. So, somehow marketing needs to be funded, marketing activities need to be completed.

How outsourcing to the Philippines addresses standing out, marketing and visibility.

Many Yempo clients re-invest the 70% salary savings they secure by building remote teams in the Philippines with us into their marketing activities.

Many clients engage lower cost business support team members with us to carry out marketing activities. For example, designers and web developers.

‘Our offshore team members free up local team members for other activities.’ – Katie W., Yempo Solutions client.

Get Started. Restore the fun. Solve problems by outsourcing to the Philippines

Book a quick chat with Michelle today, to know more about our best practices in providing offshore accounting and IT staff from the Philippines – or shoot us an email at [email protected]. We are happy to answer your questions!

Learn more:

Read more helpful information about outsourcing from Australia or the UK to the Philippines:

5 Huge Financial Advantages of Outsourcing Australian Accountancy Functions

5 Huge Financial Advantages of Outsourcing Australian IT Development Functions

Top 8 industry sectors that most frequently outsource to the Philippines

Outsourcing to the Philippines: Ensuring Fair Pay, Benefits, and Conditions

Fair Work and Offshore Hiring: Philippines Compliance