Number of Small Businesses Forecasting Growth Increases
38% of UK small enterprises believe they will expand in the next three months
The number of small firms predicting significant growth has increased by 13% since the end of 2014, with 38% feeling confident that they will experience expansion in the next three months, according to Hitachi Capital’s Business Barometer.
Manufacturing is the most confident industry with 43% of small firms in the sector predicting expansion and growth, which is an increase of 8% from Q4 2014 figures and London came out top in regards to regions at 46% (up from 41%).
The report, which featured 1,000 UK small businesses, also unveiled construction as the least positive industry, with 24% stating they will have to decrease in size and possibly close as 2015 progresses (an increase of 11% from Q4’s figure).
And small companies based in Wales were the least confident about growth, with the number of firms predicting growth falling from 34% in Q4’s report to 27%, and 14% concerned about their company’s chances of survival in the next three months.
General manager of Hitachi Capital Business Finance, Gavin Wraith-Carter, commented on the report:
“In the UK, small and medium enterprises are essential to the growth of the overall economy, and the increased confidence within this sector is arguably the biggest indication that companies are feeling inspired to try different ways of expanding quarter on quarter.
“The research highlights that there is an appetite for growth in the market and demonstrates that investment is key to ensure continued development in the future.”