Small businesses are optimistic for 2013 but consider this unlikely to translate into investment and jobs in the next six months, according to a recent report.
A survey by Lloyds TSB Commercial has revealed that 42% of small firms anticipate an increase in orders over the next six months, 44% expecting sales to increase and a third are anticipating increased profits. In addition, the majority of businesses expect to grow their total exports to Europe and the rest of the world during the first half of 2013.
On the other hand, the report also found that businesses are still cautious about investment, with only 19% of businesses planning to increase investment in the next six months, and 17% expecting to cut it. Also, less than a fifth of firms anticipate an increase in employees, whilst 11% may need to make staff cuts. Two thirds of companies said they had no recruitment plans, while 22% say they anticipated creating new jobs.
Almost half of the participants named weaker UK demand as the biggest threat to their business in the next six months, followed by employment and regulatory concerns at 25%.
“Despite the good news that businesses are feeling more upbeat about trading in 2013, weak domestic demand is still a major concern for British businesses,” said David Oldfield, managing director, SME and mid markets banking, Lloyds Banking Group.
“In order for UK growth to prosper it is essential that banks, government and professional advisers do all that they can to provide the right trading environment to ensure businesses can seize opportunities and develop.”
In 2013, Gradwell is continuing to go from strength to strength with strong growth plans to ensure we can achieve our 4×4 plan – to grow 4 times in size within 4 years. Unlike the majority of survey participants, we are planning to further increase our staff numbers and anticipate an increase in sales and profits to contribute to our growth.
How does these survey results fare to your business? Do you anticipate a successful business year? Why not speak to one of our sales consultants on 01225 800 808 to discuss how Gradwell could help your business prosper in 2013.