The future looks bright for British SMEs, as a recent survey by Albion Ventures, revealed that two thirds of small and medium sized businesses are expecting growth over the next two years. 62% expect either a ‘dramatic’ or ‘moderate’ growth, up from last year’s 59% – demonstrating an infectious optimism among business-owners. And the good news doesn’t end there for Manchester businesses, as the North West was announced to be the most optimistic area of the country, with over 80% of businesses anticipating growth over the next two years!
This reported optimism has only been reinforced by banking figures. There has been a 25% fall in businesses looking to raise finance purely to fund working capital and a corresponding rise in those trying to raise money for growth or expansion, implying a certain level of stability. These figures follow a number of initiatives in recent months aimed to assist new small to medium sized businesses, and help those who were struggling to get back on their feet. Schemes such as the Employment Allowance, an encouraged increase in loans to SMEs, and the Small Business Bill all focused on allowing SMEs to grow, and in turn take on more staff, decreasing UK unemployment rates. And of course, the new auto-enrolment aimed to help those employed by SMEs, and encourage more people to seek employment through smaller companies by promising a stable pension.
Patrick Reeve, managing partner at Albion Ventures, was particularly intrigued by the growth of ‘threshold businesses’ over the last year. These are businesses which are on the cusp of evolving from a start-up to an established small business. Reeve believes that these businesses have the potential to significantly improve the UK’s economy, however acknowledges that they face many challenges in order to maintain the level of growth and optimism achieved in the last 12 months. In order to go from a struggling start-up to a small business with enough stability to take on more staff or expand, businesses need to be careful not to jump the gun and more importantly, know when to ask for help.
MCC Accountants specialise in helping start-ups and small businesses and are able to provide a professional service from day one – whether this is keeping you up to date with current legislation, covering everyday tasks such as bookkeeping and payroll, or helping your company grow from start-up to small business. Call us today on 0161 707 1500 or send us a message through our website for more information.