SMEs keen to expand, research reveals

ALMOST half of small businesses are poised to expand in the next 12 months, according to research from the Barclays Have Your Say survey of local businesses.

The research found that 49% were planning to expand while 34% are looking to stay the same size or consolidate.

More than 3,000 small businesses took part in the survey.

Amanda Shepherd, regional director of Barclays Local Business in Yorkshire, said: “A large number of small businesses are poised to expand when the time is right, perhaps taking advantage of any upturn in the economy.

“A sizeable percentage are also not downsizing during the recession, which is an achievement in itself.

“Any decisions to expand should be carefully considered, but there are good reasons to expand at the right time.

“Companies with growth plans could be taking advantage of a completely different competitive landscape, where key competitors are missing or have downsized.”

Almost two-thirds (60%) of younger companies (under three years old) said they were more likely to expand in the next 12 months compared to around 40% of companies which have been in business for more than 11 years.

Perhaps surprisingly, the retail sector said it was the most likely to expand.