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Most SMEs have no business plan

Sep 13 2010

Many firms take a spontaneous approach to business planning

Many small firms take a spontaneous approach to business planning, according to a study.

Research by business insurance comparator SimplyBusiness.co.uk of 400 British entrepreneurs shows that 54 per cent of firms have no written business plan.

More than two thirds of entrepreneurs make decisions on gut instinct alone, while 65 per cent do not credit check new customers.

Firms also risk costly legal action over inadequate HR practices, with over a fifth (21 per cent) with no formal contracts for their permanent employees and 79 per cent with no dedicated person to handle HR operations.

Jason Stockwood, CEO of SimplyBusiness.co.uk, says: ‘Limited time and resources are characteristic of growing businesses, and the recession will have stretched UK entrepreneurs further than ever before. Understandably, many have become so focussed on working in their business that their time working on their business may have suffered as a result.’

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