Small businesses harbour expansion ambitions - Business - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Small businesses harbour expansion ambitions

Small businesses harbour expansion ambitions

Category: Business

Updated: 25/08/2009
First Published: 25/08/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The recession is having little impact on the ambitions of many businesses, with new figures suggesting that almost half have plans to expand in the coming 12 months.

Forty-nine per cent of small firms harbour ambitions for growth in the next year, a survey of over 3,000 businesses by Barclays has found.

In addition, over three in ten are looking to remain at their current level, consolidating the business.

"A large number of businesses are poised to expand when the time is right, perhaps taking advantage if any upturn in the economy. A sizable percentage are also not downsizing during the recession, which is an achievement in itself," commented Stephen Cooper, managing director of Barclays Local Business.

Companies in their relative infancy have been deemed the most likely to expand in the next year, with six in ten businesses less than three years old considering growth, compared with four in ten that have been operating for 11 years of more.

Businesses in the retail sector are most keen to increase their size, with 54 per cent of companies making plans for growth and 33 per cent looking to consolidate.

The research also found that businesses believe they need more access to marketing skills, with 44 per cent of respondents saying such know-how would improve their operations.

Sales and IT capabilities were also highly sought after.

"Any decisions to expand should be carefully considered, but there are good reasons to expand at the right time," Mr Cooper added.

"Companies with growth plans could be looking to take advantage of a completely different competitive landscape, where key competitors are missing or have downsized."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.