UK Small Businesses Expect Profits To Increase 4% Year-On-Year
A global study of 3,200 small enterprises has revealed that respondents are generally optimistic about the world economy over the next year
50% UK small businesses expect their profits to increase 4% year-on-year, according to a global study of 3,200 small firms.
The American Express Global SME Pulse has revealed that a majority of respondents are generally optimistic about the world economy over the next 12 months, with 14% of British-based businesses look forward to revenue growth of at least 8% over the same period.
In terms of profitability, 57% of UK small enterprises are forecasting a net profit of 4% per annum over the next three years, while 22% forecast net profit in excess of 8% over the same period.
When it came to priority areas of investment for UK respondents, 79% said reacting quickly to changing business demands was their biggest, 63% said it was applying the latest technology, while 60% said it was developing and implementing innovation.
When asked about customer needs, 62% of respondents agreed that shoppers are demanding more new or tailored products and services, 51% said understanding changing customer demands is a key strategy for revenue growth, while 64% said incorporating consumer feedback into R&D allows them increase innovation.
Jose Carvalho, senior vice president, Global Commercial Payments Europe at American Express, said:
“It’s very encouraging to see this evidence of optimism and self-confidence among UK small and medium-sized enterprises. Businesses are deftly navigating through challenges and this resilience is helping them to thrive.
“The research shows businesses are focusing on expansion and growth opportunities, reaching out to new markets and customers at home and globally.
“However, it’s clear these enterprising businesses often find it difficult to access the finance they need to invest, and as a result they’re looking beyond traditional sources to secure funds to enable them to thrive and grow in the long term.”