Over half of SMEs 'unprepared for tough conditions'
Jan 10 2008
New research has revealed that over half of construction SMEs are unprepared for dealing with business risks, which may appear as a result of a worsening economic climate.
The findings from the Tenon Group revealed that SMEs are not preparing for a possible downturn in construction industry trade as house price inflation slows over the coming months.
Andy Raynor, chief executive of the group, says: 'Many of today's owner-managers will not have experienced such a pronounced economic downturn before.
'So it is extremely important that they have robust plans in place now in the event of challenging times ahead,' he adds.
The research found that a further 29 per cent of SMEs revealed that they saw the biggest threat to their business as the inability to hire staff.
Another 9 per cent of construction company bosses put the UK tax regime at the top of their list of worries.
Tenon is a provider of accounting and business advice to entrepreneurs and SMEs.