SMEs concerned for future
Aug 23 2011
A pessimistic picture has been painted by the SME Trends Index
UK businesses remain worried about the future, with growth plans put on the back burner, research finds.
Some 28 per cent of UK companies admit they are concerned about generating and winning new business over the next six months, according to the latest SME Trends Index of more than 1,200 businesses from commercial finance brokerage Hilton-Baird Financial Solutions.
The biannual survey shows that only 33 per cent of respondents expect their business to expand in the six months to October – down from 45 per cent last November.
These business fears are prevalent across all industry sectors and sizes, with the construction, haulage and the printing, publishing and packaging industries the most apprehensive as to what the immediate future will hold.
Twenty-five per cent of engineering and maintenance firms are worried about their customers taking too long to pay for goods and services already rendered, and more than a third of manufacturing firms are anxious about the potential rise in costs of raw material and fuel (35 per cent).
Hilton-Baird managing director Evette Orams says, ‘Sadly the findings of our business confidence survey conveying that SMEs continue to experience significant challenges during this period of recovery are no great surprise.’
John Walker, chairman of the Federation of Small Businesses says the government needs to deliver on actions in its growth strategy to help small businesses. ‘We must see a cut in VAT to 5 per cent in the construction and tourism sectors to boost consumer demand. It is tangible measures like this that will actually help small businesses to be able to grow their businesses and grow the economy.’
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