SMEs keen to expand
Nov 03 2011
SMEs aim for growth, but want more fiscal incentives
Seven out of ten small and medium-sized businesses will be hiring over the next six months despite more than half expressing concern about their business outlook on the back of sluggish economic growth figures.
The survey by the London Entrepreneurial Exchange (LEE) was carried out in the wake of the latest economic figures revealing 0.5 per cent growth in UK GDP for the July to September quarter.
Small and medium-sized businesses want more fiscal incentives to help stimulate the growth they aim to deliver. Given the choice between a 12 month holiday in National Insurance contributions or a 12 month cut in VAT from 20 per cent to 17.5 per cent, 55 per cent of owners surveyed say they would opt for a year’s holiday on NI while the balance of 45 per cent say they would prefer the drop of 2.5 per cent in VAT levied.
While 60 per cent of business owners do not believe, or remain unsure, about the latest Euro bail-out being good for their business, 61 per cent do not want a referendum on UK membership of the EU.
CEO of the London Entrepreneurial Exchange Shalini Khemka says, ‘Despite the economic uncertainty in the UK, compounded by macro-events in continental Europe, SMEs are keen to expand over the coming six months.
‘They have the entrepreneurial spirit but to see them through the clear difficulties that lie ahead, we call for an urgent review of the level of national insurance contributions levied on young employees to help stimulate growth.’
Khemka says that a temporary reduction in National Insurance will be good for business, good for employment and therefore good for the economy and wider society, and that wealth generation will drive prosperity for the country as a whole.
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