Entrepreneurs to increase headcount

Two thirds of entrepreneurs will hire more employees for their businesses this year, according to research.

In further evidence demonstrating the importance of small and medium-sized enterprises to growth in the British economy, the survey, commissioned by Investec bank, finds 6 per cent of entrepreneurs will increase their headcount by more than 20 per cent.

According to the survey, 39 per cent of respondents expect to see their headcount rise by up to 10 per cent, 6 per cent expect an increase between 11 and 15 per cent, and 15 per cent predict their headcount will rise between 16 and 20 per cent.

Only 12 per cent anticipate the number of people employed in their UK business will fall this year, finds the survey of 137 entrepreneurs with interests in one or more businesses with turnover of at least £1 million. One in five (21 per cent) expect to see staff numbers remain the same.

Investec growth and acquisition finance manager Ed Cottrell comments, ‘We are not surprised by these findings because our research reveals that of the leading entrepreneurs we interviewed, 56 per cent expect the UK economy to improve over the next 12 months, and only 19 per cent expect it to deteriorate. 

‘This helps explain why 44 per cent plan to launch new ventures in the UK during 2011.’