SMEs should plan for growth says Baker Tilly

THE majority of small and medium-sized businesses in the region are expecting turnover growth of more than 5% over the next 12 months, but there is a reluctance to borrow to expand faster.

This is according to research from Baker Tilly, which reveals that 42% of SMEs in the North-West are confident about growth opportunities for their businesses over the next 12 months.

Just over half (55%) expect sales to grow by 5% or more in the next year, but  nearly three quarters, 74% of respondents said they were content with their current levels of success and 71% were not prepared to take on more debt to expand.

The findings were revealed in the Baker Tilly Your Business Outlook 2014 which surveyed 750 SMEs across the UK about their expectations, opinions and priorities for the coming year.

While 26% of regional respondents said they planned to take on new staff within the next 12 months, 39% said they planned to increase their capital expenditure, with 35% planning to increase their sales and marketing spend over the next 12 months.
 
Jill Jones, Baker Tilly’s North West managing partner said: ‘It’s good to see that there appears to be real optimism from North West SMEs around their prospects for growth, although it’s difficult to see where this growth will come from.

“Understandably, many businesses in the region remain cautious about investing in resources to deliver growth, but SMEs now need to explore other opportunities for expansion.

“The real concern is that if SMEs don’t take a long-term view or ignore opportunities for investment and expansion, then economic recovery will remain hesitant and uneven.   

“We’re coming out of a long period of economic downturn and so businesses need to make more strategic decisions and make the best use of tax incentives and Government assistance available to them.”