Small firms are eager to get growing

MORE than three quarters of small business owners are working on growth plans as they are increasingly confident about the economy, according to Hitachi Capital Business Finance.

It said that 78 per cent of small to medium-sized enterprise (SME) owners are working to strengthen their businesses over the next 12 months and that confidence among them is at a two-year high.

Hitachi said that the top priority for nearly half is to increase sales, while 28 per cent stated that theirs was launching new services or products. Reducing costs and building up financial reserves were cited as a priority for 23 per cent of SME owners.

Joanna Morris, Hitachi Capital head of insight, said: “Small businesses are eager to expand over the coming months, having had such an uncertain time throughout 2020. Small businesses are the bedrock of the UK economy, so it is encouraging to see that they are still standing tall and looking forward at a time when many larger organisations are evaluating the impact of Covid-19.”

Hitachi added that SME manufacturers were the most likely to prioritise boosting sales and new business, while launching new products and service lines was the most pressing concern for retail businesses.

Hospitality companies were most likely to focus on building up their financial reserves.

This week, data from the closely watched Markit/cips purchasing managers indices is expected to show that Britain’s economic recovery is gathering steam.