Small businesses resolve to grow
May 15 2007
Small businesses in the UK are growing in confidence and are increasingly optimistic, despite a toughening operating climate and a slowdown in growth, says the latest report by the Small Business Research Trust (SBRT) and HSBC Bank.
The report of over 1,000 businesses shows that, while sales growth in the first quarter of 2007 has eased as anticipated, both employment and investment have improved. Investment growth is stronger in every sector, particularly in manufacturing, construction, transport and communications, and health and education.
Small business owners forsee significantly higher growth in the second quarter of 2007, with 45 per cent expecting sales improvements, 16 per cent anticipating a boost in employment and 21 per cent forecasting higher investment.
Simon Wainwright, head of business banking at HSBC comments: ‘It is somewhat surprising that small businesses in the UK are growing in confidence, considering the increasing challenges they face from the uncertain economic climate. That they are continuing to invest and recruit more to grow their businesses shows great resilience and determination in the UK small business sector.
‘However, it is vital that small business owners continue to budget carefully and plan diligently for any future expenditure and changes in circumstances. Failure to do so could result in firms being left vulnerable if the unexpected occurs, for example, a downturn in the economy.’