09/05/2011
Confidence is growing among businesses, with many expecting to see revenue growth in the coming year.
The Regus Business Confidence Index showed that despite only 36 per cent of small businesses in the UK registering growth last year, 77 per cent expect to see growth in the year ahead. The UK's confidence score also saw a rise, growing from 100 (reported in October 2010) to 108.
The figures could encourage more small businesses to utilise sales finance in order to help their cash flow as they begin to make the profits they have forecast for 2011 and 2012. The freed up money could then allow businesses to take on more staff or expand their premises in time for the predicted bounce.
Whilst the figures show a slower, more steady increase than some European counterparts, analysts have claimed that the results for 2011 were just as forecast, and the figures for 2012 look set to be much higher again.
The results also showed a difference between small and large businesses, with the larger firms registering a larger growth, something too that was forecast by the experts. Speaking of this, British Chambers of Commerce economist Steve Hughes told is4profit.com, "Small businesses are that the end of the supply chain and the end of the payment chain."
"They face more difficulty and they tend to have less expertise in-house to deal with things like regulatory changes."
However, Regus' regional director Ceri Doone said there were many positives to take from the findings. She told lawdonut.co.uk, "That business confidence is returning is good news for the UK economy, as is the fact that so many companies are reporting rising revenue and profit."
"Although the business tracker highlights the extent to which small business is bearing the brunt if the weaker economy, it's encouraging that their profit expectations are as buoyant as their large counterparts."
David Howells