How can a small business improve its growth prospects?

UK businesses are becoming increasingly micro in size as they struggle to expand. A business with growth(1)less than 10 employees is classed under the micro size category. This category is the only one to have increased its share of the UK business stock since 2000.

Data has revealed that there has been a large downward trend in business survival rates and over half of small businesses don’t make it beyond their first five years. With this in mind, is the government doing enough to nurture these young ventures?

Government action

According to a recent study many small business leaders describe themselves as ‘ambitious’. However, 73% of business owners argue that the government needs to make information easier to access and provide better support to increase bank lending.

While the government has made recent attempts to restore the balance with recent initiatives, such as the Small Business, Enterprise and Employment Bill, there is still a lot more that needs to be done.

 

How can small businesses improve their growth in the meantime?

The government has an ideal opportunity as the economy improves to implement changes and offer real incentives for small businesses to prosper. However, in the meantime there are steps that SMEs can take.

 

  • Make use of available support: the government is in the process of launching a number of initiatives to support different kinds of businesses across the country. This could provide much needed relief for those smaller companies that continue to struggle.

 

  • Have knowledge of your market: understanding predictions within a chosen industry is key to staying on top and remaining competitive and ensuring that small businesses can react to and adapt rapidly to changing conditions within the market.

 

  • Be Confident: As the economy recovers, smaller businesses should make the most of their flexibility and focus on achieving their full growth potential. Some decisions might seem like a big risk but if you’re well prepared and have taken the necessary precautions then they could be the best way forward for your business.

 

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