Entrepreneurs in the UK are shrugging off the worst of the economic slouch and are confident about future growth, according to the latest research.

The facts:

The international study by insurance group Hiscox shows that 52 per cent of UK small business owners have no intention to cut back expansion plans over the next 12 months.

The sentiment chimes with that of small businesses in France and Germany, where the majority of entrepreneurs plan to grow the face of prevailing economic winds.

But, true to form, businesses in the US were most confident overall. Just under seven in 10 small firms over there declared their intent to carry on growing regardless.

They said:

“We know small businesses can be fleet-of-foot and highly adaptable in a downturn and it’s good to see that the British entrepreneurial spirit is still strong, despite the credit crunch,” said Steve Langan, UK Managing Director at Hiscox.

“At a time when big businesses are announcing profit warnings, refinancing and job losses, small business owners in the UK, Europe and the US are bucking the trend. They seem determined to keep growing their business.”

We say:

To keep growing, large corporates diversified into new markets in recent years, most notably financial services (think Tesco, Marks & Spencer’s etc). It’s these divisions that are most exposed in the credit crunch.

Small businesses are more focused on their respective niches, and those with solid funding behind them are well placed to continue growing. Consumer confidence maybe falling but spending (particularly online) is increasing.

Watch out for embattled consumers changing their spending habits to save money. For example, domestic tourism could benefit from an increase in holidays to the coast, rather than more expensive destinations abroad.

Good luck!

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By News Desk  on   Jul 22,2008

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Keywords

economy    confidence    small business    US    credit crunch   

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