A growing problem for small businesses…
I think most of us will agree that it isn’t exactly the best time for small businesses in the UK. Combine, soaring unemployment rates, the biggest inflation rise for 20 years, and the prospect of energy prices increasing and this suggests a fairly gloomy state of affairs. This week it was also revealed that lending figures to businesses are subdued and banks are warning they might have to push up the cost of loans.
Barclays has just released some research into small business growth in the UK economy (ironically enough), but they found that small businesses have less ambition to grow their businesses than last year. The survey included 1,000 managers in small businesses and found that 49 percent have hopes to grow, rather than consolidate, compared to two thirds (66 per cent) in 2010. However, this does mean that nearly half of small business owners still believe that they’ll see growth this year, which can be seen as a good thing, particularly given the market challenges out there.
For those small business owners who are finding that all energy is going into keeping the business afloat this year, they can take comfort in the fact that they’re far from alone. The wider business community is suffering and it will take everyone’s combined efforts to see the UK economy through to brighter times.
We’d love to hear about the steps you are taking to encourage growth and motivate your staff in tough times. Please share your comments and experiences below.
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