Small businesses eye growth despite gloomy outlook
Despite a difficult economic backdrop, small businesses in the UK are making plans for growth over the next three months, according to new research.
Novuna Business Finance said that 70 per cent of the 1,201 small businesses it tracks are making plans to grow, up from 67 per cent at the start of the year.
More than half of the businesses however said they needed to reduce fixed costs, while 30 per cent said they were trying to improve cash flow. A quarter are trying to tackle late payments.
One in eight of the businesses are spending money on new equipment. This rises to 26 per cent for the manufacturing sector. In the coming months, one in seven are looking to expand into new markets or internationally, which rises to 22 per cent among growing businesses.
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“There has been no let up for small businesses for an extended period now, and signs on the horizon of the storms clearing appear bleak,” said Jo Morris, head of insight at Novuna Business Finance. “Rampant inflation, soaring energy costs and shrinking economic growth present merciless trading conditions, all after the serious challenges presented to small businesses during the pandemic. And yet, once again, we see the resilience displayed by small business leaders in their outlook and plans to achieve growth during this time.
“Making plans to grow is often the best form of protection during a challenging period. It provides direction to navigate through the storm, and mitigates the scrapes along the way. It also puts a business in the best position to pounce on opportunities that emerge during a crisis.”
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