Growth is a sign of a healthy company. Whether its growth in turnover, market share or profits. An improvement in these key performance indicators reflects a business that is moving in the right direction.
Yet despite around half of small and medium businesses predicting growth, there are noticeable gaps in the business capabilities required to create this growth. If you are one of many SMEs that require expert support in specific areas of tax, finance, accounting systems or litigation support, please make contact with our senior partner, Tarrant Green.
The recently published UK Small Business Survey was conducted for the Department for Business, Innovation and Skills amongst 5,000 small and medium enterprises (SMEs) with fewer than 250 employees. It revealed that 51% of business leaders predict growth in turnover in the next year, while only 8 per cent forecast lower growth.
Over 2 to 3 years the expectation of growth is yet stronger with 74% of SME firms aiming to grow their businesses.
Firms in some sectors have above average growth ambitions:
- 81% manufacturing
- 86% information and communications
- 78% business services
- 83% administrative services
Yet despite this commitment to growth, when employers were asked about their capability in essential business areas, the percentage believing they are strong on these tasks falls below 100%:
- 78% people management
- 73% decisions on tax and regulation issues
- 61% business strategy
- 61% operational improvement
- 44% introducing new products and services
- 28% entering new markets
- 27% accessing external finance
This begs the question, if a significant proportion of companies lack essential capabilities, then how will they optimise their firm’s performance and achieve its growth goals?
As well as revealing gaps in business capabilities the survey also showed that there are issues for SMEs that need to access finance. Almost 20% had looked for finance in the previous year and of these 39% experienced some problems in securing the funds they wanted from their first choice source, including 30% who were refused outright.
Of course, it has always been difficult for SMEs to cover all the bases in terms of business capabilities. Unlike huge corporations, large teams of specialists in tax, strategy and finance would represent an unwarranted overhead.
Tarrant Green and Company supports SMEs when they need help, for as long as they need it, to bolster their capability, including:
- providing advice and training on appropriate accounts systems and software
- assisting in raising finance
- taxation investigations and litigation support services
- forensic accounting
- advising on the most efficient approach to taxation.
In order to support emerging new businesses and SMEs, we are proud participants in the Business Advice Service of the Institute of Chartered Accountants in England and Wales.
You can email firstname.lastname@example.org or call +44(0)1438 869 644 for details.