SMEs unsure on growth
Jan 09 2012
Some 31 per cent of small businesses expect their company to grow while 20 per cent see contraction on the cards
Less than a third of small businesses expect their company to expand over the next six months.
According to a survey of more than 400 small companies by Hilton Baird Financial Solutions, just 31 per cent of respondents are expecting growth in the first half of 2012, with 20 per cent predicting their enterprise will contract and 49 per cent expecting no change.
Limited access to funding is cited as a reason for the sustained downturn. One respondent says, ‘There is not enough money circulating. Businesses are relying on bigger and bigger overdrafts where previously none were required. Small businesses cannot carry the financial burden of non-payment of bills while the banks are not prepared to facilitate credit to the level it is required.’
Hilton-Baird manager Evette Orams urges businesses to take a thorough look at the wider options available to them. She says, ‘It is clear that UK businesses and small and medium-sized ones in particular, are suffering from a distinct lack of confidence currently. This inevitably leads them to at least think twice, if not defer any decisions regarding investment in their business’ growth.’
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