SME growth expectations bounce back in first quarter of 2016
Published: 15 April 2016
Running a small business? Did you know almost half of SMEs expect sales to increase in the months ahead? According to Bibby Financial Services’ (BFS) latest SME Confidence Tracker, UK SMEs have signaled a more bullish outlook in the first quarter of 2016.
The new research showed that growth expectations rose by twelve per cent in the first quarter of 2016 when compared to the last quarter of 2015, while the number of small businesses expecting sales to decline fell by over half from 17 per cent at the end of 2015 to eight per cent at the beginning of 2016.
David Postings, global chief executive of Bibby Financial Services, said: “Despite the uncertainties of the upcoming EU referendum and a muted outlook for the UK economy, small business owners started the year in an unexpectedly bullish manner displaying more confidence than in the second half of 2015.
“Having made business-critical capex decisions and invested in the building blocks of business in 2015, SMEs are looking to position themselves for growth in 2016. However we are not out of the woods yet as SMEs still don’t believe in the UK growth story and optimism remains far below 2014 levels.
“Add to this changes such as the National Living Wage and pension auto-enrolment, it’s clear that SMEs crave stability and would benefit from a more simplified operating environment.
“The Budget nibbled at the edges of SME’s challenges but much more can be done to get businesses moving in 2016. This should include rebalancing the North-South divide by offering tax breaks to redevelop brownfield sites rather than building on greenbelt farmland.”
