9:00am Thursday 11th March 2010
SMALL businesses are pinning their hopes on improved sales and marketing strategies to beat the effects of recession.
The Forum of Private Business (FPB) found that after cutting operating costs, many smaller firms are hiring sales staff, improving their websites and boosting marketing activities in an effort to tackle tough trading conditions.
Fifty-six per cent of those surveyed expect to increase their turnover in 2010, while 44 per cent believe their businesses will grow.
FPB research manager Thomas Parry said: “These findings show there’s a healthy amount of fighting spirit among smaller firms.
“We appear to be seeing an upturn in confidence among SMEs (small to medium enterprises) and, by investing in sales and marketing strategies, small business owners are showing determination and entrepreneurial flair.
“However, much of this optimism is based on the hope of a recovering economy and increased business and consumer confidence.
“Political, economic and currency stability are all important too, with a proportion of businesses suffering from the weak pound. Also, the difficulty for businesses in terms of planning is indicated by the fact that nearly one in five businesses are uncertain about the support they may want in the next month.”
Mr Parry added: “Businesses currently have a relatively high level of debt, but the low base rate has made the cost of finance to be relatively affordable with 80 per cent of the firms we surveyed stating that it was affordable.
“However, even those who felt it was affordable were concerned that when economic growth becomes more sustainable, the cost of borrowing is likely to increase.”
The survey also found that 60 per cent of those surveyed expect to see the general cost of business to increase this year while 76 per cent are anticipating tax increases.
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