Companies looking for growth
Oct 07 2008
Small business competition 'is weakened'
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Cash rich, well-run businesses will be in a strong position to gain market share and make acquisitions over the coming months, a source reports.
According to the Institute of Chartered Accountants in England and Wales ((ICAEW), the current economic turmoil has weakened the competition for many small businesses.
Clive Lewis, head of small to medium enterprise issues at the institute, says a 'surprising number' of companies have reported one positive outcome of the credit crunch is the effect it has had on rivals.
'A number of them said that they were looking to make acquisitions because of weakened competitors to strengthen their position in the market place and to grow their business,' he states.
Lewis advised small firms to be 'very focused' on their finances and to keep within the terms and conditions of any overdraft or loan.
He adds cashflow needs to be a daily focus 'without fail'.
The UK Enterprise Survey Report 2008 from the ICAEW found over 80 per cent of businesses are still planning growth in turnover across the next two years, despite the credit crunch.
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