Steve Tudge. (Credit Print Week)
Survey indicates many small and medium businesses in UK are optimistic for future.
An annual survey conducted by mid-market private equity firm ECI found that UK SMEs forecast increased job creation, R&D) investment and market growth during the next year, reports Print Week.
The survey was carried out on 315 directors of UK-based growth companies from a range of sectors, from business services and technology to healthcare, that have a turnover of between £10 million ($15.9 million/€12.6 million) and £200 million ($318 million/€252 million) and are showing growth of more than five percent since their last accounts.
The results showed that 61 percent of those surveyed predicted turnover to increase by more than 11 percent in the next 12 months, with 86 percent predicting growth of over six percent.
In addition, 78 percent of respondents said that they would take on more staff over the next 12 months and 48 percent said they planned to invest in R&D and new products, compared to 38 percent of last year’s respondents.
The results were not all positive, as only 16 percent of businesses believe that the coalition government’s policies were benefitting business, compared to 47 percent of last year’s respondents; and 64 percent believe that access to finance “continued to be a key barrier to growth”, with 27 percent indicating that “access to human capital was hampering expansion”.
Despite this, expanding to international markets was indicated as being on the agenda for many respondents, with 43 percent citing Europe as potential market and 39 percent recognising Asia as a strong growth opportunity.
Steve Tudge, ECI Managing Director commented: “It is imperative to create the right environment for these SMEs, as they tend to invest more and grow employment more than other sized businesses.
“The key areas for investment, other than overseas expansion, are investment in staff and investment in R&D and new products. Encouragingly for the economy, fewer businesses are focused on cost reduction this year than the last two years.”
The Recycler reported recently that the Federation of Small Businesses (FSB) is calling for UK councils to do more for SMEs, while serial entrepreneur Dan Wagner also highlighted the need for support of SMEs in the country.