Creating New Business is Top Concern for Small Firms
Companies that describe themselves as “highly ambitious” significantly more concerned about business issues
Creating new business, legislation changes and keeping existing sales volumes were named as the top worries for small businesses in 2015, according to research by finance group Santander.
The top concern among small and medium enterprises is gaining new customers, with 44% of firms saying that they are worried about their ability to generate additional business in 2015, this was followed by apprehensions over red tape (37%) and maintaining sales volume (36%).
Other key concerns that emerged from the research, which included the opinions of 800 small and medium enterprises, include cashflow (35%), managing employees (35%) and customer credit risk (28%).
The research also revealed that anxieties were more prominent across all business issues in the firms that described themselves as “highly ambitious”, but especially in regards to generating new business (50% compared to the average of 44%).
Finally, the survey found a shift in business priorities relating to company size. Smaller companies (annual turnovers of between £1m and £2.5m) were more concerned about generating new sales (47% compared to 43%), whereas larger businesses (turnovers between £2.5m and £25m) worried more about customer credit risk and managing staff.
Marcelino Castrillo, head of Santander’s small and medium enterprise sector, commented on the findings:
“Existing and new customers are the lifeblood of small and medium enterprises, so it is good to see these are priorities for the majority of firms.
“It is also interesting to note the heightened awareness of these among firms that see themselves as highly ambitious – a strong grasp on core business issues such as customer service, sales and staff management are fundamental to the success of any business.”