Small business growth plans could boost the UK economy by more than £40bn, according to new research.
The latest Enterprise Nation Small Business Barometer has found that a fifth of UK small businesses (20%) say they are expecting to reboot growth plans, up seven percentage points compared to 12 months ago. The survey of businesses also found that, of those with growth plans, 34% expect to grow by around a quarter, which could deliver a boost of more than £40bn to the UK economy.
"It's refreshing to see confidence return after the recessionary pressures of 12 months ago, followed by the unavoidable political turbulence caused by the general election. Entrepreneurs are often at their strongest in the face of adversity, so after putting growth plans on hold during an extremely difficult set of challenges, they can finally see the light at the end of a very long tunnel." Emma Jones, founder and ceo of Enterprise Nation.
The key findings of the Enterprise Nation research show that:
- 20% of businesses polled say it's "very likely" they will grow in the next 12 months, up from 14% this time last year.
- 45% of businesses are looking for investment to fuel their growth plans.
- 44% describe their business as "digital", up by one percentage point on last year.
- Only 16% currently export but another 26% would like to.
Business challenges remain
Despite the new confidence, business owners face a number of ongoing difficulties. They say that persistent cost pressures on consumer pockets is the biggest challenge moving forward (42%) as well as late payments, with 23% saying they are still often paid late for their goods and services. Half of those polled have found business support online but 34% can't find business support that works for them.
Overall, 44% of businesses describe themselves as digital; however, there is a stark disparity between businesses run by women - with only 37% describing themselves as digital - versus male-founded businesses (52%).
The analysis also finds that 20% of entrepreneurs are still frustrated at the lack of access to commercial space, be that business units, co-working spaces or high street pop-ups. The problem is felt most keenly in Scotland (29%) followed by the North West (25%) and the West Midlands (23%). This figure has remained a persistent problem for two years with no movement, according to the analysis.
Looking ahead to the Autumn Budget, the majority of business owners (60%) say that the current tax burden on small businesses is already too high, suggesting that any future tax hikes could have a negative impact on confidence as well as profits.
Written by Rachel Miller.