Small businesses reveal revenue concerns for 2017

Three quarters of the UK’s small businesses have revealed they expect revenues to shrink or stagnate in the coming 12 months, new research shows.

More than half of SMEs do not believe that the government does enough to support growth either, according to the figures from insurance firm RSA.

While this might be a leading factor as to why 71% of firms do not expect growth in 2017, the situation can still be improved.

The RSA has suggested a set of measures that could help industry and the government work more closely together to enable growth.

It is claimed that more information on market behaviour and patterns is needed so that small businesses can develop in-depth strategies.

The need for businesses to protect themselves from economic uncertainty was also noted in the study – a failure to have contingency plans in place can lead to insolvency in extreme cases.

The study also identified the need for infrastructure investment, especially into broadband and transport services, to enable businesses to reach more customers.

Alongside nationwide rollouts for superfast services, the Government has just announced that a further 600,000 homes and businesses can benefit after it recouped £440 million, which will go some way to assisting that particular issue.

In addition, companies should be given better access to finance according to the RSA, so they can overcome potential stumbling blocks and compete with larger firms.

Finally, the study suggested that more data should be given on businesses that fail in the hope that others can learn from the examples, manage risks better and not make the same mistakes.

Given the input into the economy from small businesses across the UK, providing them with support to expand and thrive would make logical sense.

However, the study suggests that there is room for improvement, especially in a climate of economic uncertainty in the wake of the EU referendum.

By Phil Smith

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