Running a start-up or small business is difficult at the best of times: running a small business during a recession is unbelievably tough.
Even with the help of accountants like Steven Glicher small firms can find it very difficult to make ends meet, let alone drive growth and increase profits. The news coming out of Westminster and Brussels has been grim for the last few years: the abiding message for business has been to hang on in there until things improve. That hardly inspires confidence or encourages businesses to invest.
So it makes a refreshing change to read some good news for once: news that will prove to be very welcome to small businesses. According to a new survey by the Confederation of British Industry, economic optimism among the UK’s small and medium-sized enterprises (SMEs) is on the rise. What’s more, the number of people declared insolvent in England and Wales fell by 6.1% in the second quarter of the year compared with the same period in 2012.
Both of these news stories have to music to the ears of small business owners.
The CBI claims small businesses have been increasingly upbeat about the nation’s economic position for the last six months, and their confidence is further underpinned by encouraging projections for the next quarter. It also predicts that over the course of the next three months there will be a significant improvement in export and manufacturing figures, despite the overall poor performance that has continued to blight the sector.
However, before small businesses get too carried away, the CBI also noted that domestic orders remained flat and had a negative impact on output. In spite of that it still believes that manufacturers can expect 9% growth in the total number of new orders during the next 3 months, and a 5% increase in both domestic and export orders. The pressing concerns for most small business in uncertain economic conditions are undoubtedly overheads and margins; so small businesses should be encouraged by the news that there has been a 10% decline in average unit costs. Moreover the CBI claims that sentiment regarding the general business situation had increased by 9% over the last 6 months – the first time it had showed positive growth since April 2012.
Anne Leach, head of economic analysis at the CBI, said:
“Despite another disappointing quarter for small and medium-sized manufacturers, with output continuing to fall, optimism about the general business situation has risen for the first time since spring last year. Firms expect demand to improve both at home and abroad and production to stabilise over the next three months.”
If you run a small business and are finding the going tough, then Steven Glicher accountants are here to help you. We can offer information and advice on tax planning, business structures, book keeping, business planning and growth, raising finance and VAT registration. Whatever your small business needs, speak to Steven Glicher accountants on 0161 485 8007.