Reference: Visit websiteSmaller businesses are less likely than their larger counterparts to anticipate growth in the volume of products and services they sell over the next 12 months.
They are also less confident about passing on increases in costs to customers, according to research by Price Bailey, the Top 30 firm of accountants.
Optimism begins to dip for businesses with 500 employees or fewer, and businesses in the smallest category (between 10 and 249 employees) are the least optimistic of all. Just over half (57%) of finance directors of businesses with between 10 and 249 employees expect an increased volume of services and products sold over the next 12 months, with 52% forecasting an increase in prices.
According to Price Bailey, concerns about forthcoming legislation such as the Employment Rights Bill and the prospect of tax and minimum wage hikes in the forthcoming Autumn Statement are likely to be weighing heavily on small businesses.
"In light of the challenges they face, the Government should consider how it can provide targeted financial support to smaller businesses. The UK already has several successful schemes that help to channel investment into SMEs, including the VCT, EIS and SEIS schemes. It should consider how it can further promote these schemes to encourage interest from potential investors who may not have used them before. It should also explore whether further incentives are needed to unlock capital investment into smaller businesses."
He adds: "As well as providing financial support, the Government should reflect on how it can create the right environment for all businesses to thrive. That involves minimising their administrative and regulatory burden and ensuring that they can access robust digital and physical infrastructure."
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