SMEs optimistic for the future
Article Date: Dec 21 2005
Growing business owners are feeling optimistic about their prospects for the coming year, despite rumblings of concern about the global economy according to the results of a survey by MasterCard International.
Of those polled, 60 per cent see the future outlook of their business as promising and over half have confidence they will meet their financial goals in 2006.
Interestingly, while only 13 per cent said it was easier for SME owners to succeed this year compared to last, almost three-quarters of respondents would tell a friend to start a business now, rather than wait another year.
‘Even amid rising business costs and mixed views on global economic outlook,’ comments John Bushby, Senior Vice President & General Manager, Northern Europe at MasterCard Europe, ‘this research shows that small business owners around the world are optimistic about the future and feel confident they will be successful.’
Sales and business development (cited by 28 per cent) is considered to be the biggest challenge for the year ahead, followed by cost increases (24 per cent), and competition (15 per cent).
Technology is considered important to 90 per cent, with almost 80 per cent believing that it creates financial opportunities and two-thirds that it gives them a competitive edge. However, 60 per cent plan to spend just ten per cent or less of their budget on technology upgrades.
Other findings include:
- 39 per cent expect to find the economic environment about the same in one year’s time – 20 per cent expect to find an improved climate.
- 35 per cent were more than satisfied with their businesses financial performance over the last year.
- 57 per cent feel that their businesses future outlook is promising in the coming months.
- 28 per cent of business report that their businesses have been more successful than expected over the last year.
- Just over 50 per cent of all businesses have recruited staff over the last year, however, 59 per cent are not planning to recruit over the next 12 months.
- 54 per cent of UK SMEs expect sales to be greater in the forthcoming year.
- Key influencers on businesses are clients at 67 per cent, business partners at 15 per cent, spouse at seven per cent and investors at six per cent.
- 70 per cent of UK SMEs currently use business debit and credit cards.
