"Financing projects from £50,000 to £100 million"

SMEs optimistic about growth in 2014

SMEs optimistic about growth in 2014

The UK's small businesses are showing greater optimism for growth, according to latest research.

56% of Britain’s SMEs are positive about generating revenue in the upcoming year, according to BSI, the business standards firm.

Small businesses are beginning to extend their reach towards new domestic and overseas markets to achieve growth, the latest report found.

One in five firms is looking to break into overseas markets for the first time, while almost the same proportion is looking to expand its export position.

“The Chancellor’s ambition to double the value of UK exports by 2020 requires a sea change in attitudes amongst small firms to overseas markets,” said Howard Kerr, the Chief Executive of BSI.

“Currently just a fifth export overseas, despite a recognition of the benefits to be gained.”

Access to Finance

Concerns have been raised about recent Bank of England figures, which show that lending to SMEs fell by 3% (£5.2 billion) in the year to April.

But only around 10% of firms said that the ability to access finance would hinder their growth prospects.

The level of optimism varies between the size of the firm and its industry sector, but mortgage brokers are among the most optimistic, with over three in four (76%) expecting positive results from 2014.

Firms are also showing confidence in the momentum of growth. Businesses with larger number of employees are more optimistic about boosting revenue than those with fewer than 10 workers.

Mr Kerr added: "Confidence in an improving economy is being felt ever more strongly across British enterprise, but this needs to be matched with a confidence in capability.

"Chasing growth means making tough choices on whether the benefits of expansion outweigh the risks. Small firms must ask themselves whether they possess the confidence to chase excellence rather than settling for mediocrity."

Tuesday, 10 June 2014 11:23
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