Recent figures indicate that small businesses who have seen their sales take a tumble recently could breathe a sigh of relief – at least for the time being.
Inflation in the UK unexpectedly fell last month, resulting in households having more cash to spare and more money to spend on goods and services. However, despite this, prices are still rising faster than average wages, meaning that companies are going to have to work hard to keep up a healthy pipeline of sales.
Elsewhere, it’s good news for the economy as a whole, as data published this week shows that job vacancies are increasing across the nation. Social care, construction and design were among the top performing sectors in this regard and the number of job vacancies in London grew by an impressive 11 per cent. Find out how you can recruit the best employees in our recent blog.
The UK’s tech sector seems to be withstanding the rocky business climate of the previous year, and is attracting huge levels of investment, according to recent research. According to Pitchbook’s European Venture report, almost 40 per cent of all venture capital funding in the European tech sector went towards UK and Ireland-based small businesses this year.
Despite growing movements to decentralise tech investment away from London businesses, investment remains in line with historic levels, demonstrating resilience within the tech sector in the UK. This is good news for SMMEs in particular as there is still healthy appetite for investment in these businesses.
Although certain industries are creating more and more jobs, there are signs that the economy may be heading for a downturn in the near future – and the finances of small businesses demonstrate this. The latest SME Confidence Tracker, produced by Bibby Financial Services, has shown that the amount of bad debt held by small businesses has increased by 70 per cent compared to just a year ago.
What’s more, there is an overall trend of less investment: the small businesses surveyed said that they were planning on reducing their investment over the next quarter. Although average investment was £101,920 in the second quarter of 2016, an average of just £65,782 was recorded last month. To offset this, SMMEs need to ensure they are attracting new business leads – read our recent blog post for advice on how to do this.
If you have any questions or would like further information about the range of support on offer in the Building Legacies Programme, please contact Danny Hackett on firstname.lastname@example.org or call the office on 020 7537 6480.