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SMEs expect costs to rise in 2008

Jan 07 2008

An estimated one in ten SME owners expects costs to increase by over ten per cent during 2008, claims new research.

Research from the Bank of Scotland, which examines the predictions of SME owners for a range of fixed costs in 2008, reveals that one in three SMEs believe costs will rise between five and ten per cent. A further four out of ten expect an increase of less than five per cent.

The findings also show that the majority of entrepreneurs expect all forms of costs to rise over the coming years, including rents, property prices and interest rates.

Ivan Matviak, head of Bank of Scotland Business Banking, says that SME owners are 'acutely aware of the impact that additional fixed costs can have on the bottom line'.

He adds: 'it's crucial for SMEs to seek out the best value by working with service providers that can provide them with the best deal possible.'

Findings in the bank's latest Small Business Confidence Index, show that 63 per cent of respondents expect economic conditions to worsen over the next 12 months.

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