Small British businesses are experiencing a change in fortunes this year, with overall conditions improving for the majority. Yet while the orders may be rolling in, one area remains of high concern to SMEs and larger firms alike – business costs. According to new research published by the Forum of Private Business, “the cost of doing business”, which includes business rates and rising utilities bills, is still seen as a roadblock for business growth by almost half of all firms surveyed.
Due to the recession, and the ongoing cash flow issues created by several years of economic downturn, many small businesses have been forced to downsize in a bid to consolidate debts and rebuild depleted capital savings. As a result these firms now struggle to meet deadlines, recruit skilled staff and, significantly, find the money to pay for the running of their commercial properties.
Fortunately, while business costs may be weighing heavily on the minds of small business owners, it appears that they are not yet enough to dampen the feeling of optimism which has pervaded the business world.
Out of all firms surveyed, an overwhelming 85 per cent expressed confidence for the coming year, citing aims to further develop businesses and channel investment into growth in order to capitalise on the country’s favourable business conditions.
A large part of this growth will revolve around employment and recruitment, with around a third of respondents intending to grow their workforce significantly over the next 12 months. Another popular strategy seems to be increasing the number of hours offered to employees, with 15 per cent intending to implement this in the coming months.
Furthermore, the focus of most businesses will be to develop their consumer bases as a means of funding growth. 41 per cent intend to do this by launching new products aimed at key age groups, 42 per cent want to improve their levels of customer service and a majority 60 per cent wishes to target new customers entirely by offering a range of incentives.
How do you think the government could improve the situation for small businesses – should the issue of business rates be dealt with first, or should pressure be put on energy providers to freeze costs?
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