QuickQuote
Why talk to SME Invoice Finance Limited?
Since 2000, we've focused on helping small owner-managed businesses like yours. Through good times, bad times, upturns and downturns, we're committed to supporting your business by giving you access to cash flow and working capital.
We're independent of the UK clearing banks. Which means we don't have big rule books and we won't tie you up in red tape. Instead, we're free to give the personal support and attention your business deserves.
Find out more about how we can support your business. Email, get a quick quote, or call us on 0800 0838835.
SMES SEIZE THE DAY
Posted on 8th Jan 2012 in News
Innovative SMEs are continuing to thrive and capitalise on new opportunities in spite of continued economic difficulties, increased regulation and unanticipated business disruption, according to the RSA Risky Business Report. The survey, which was produced in conjunction with Warwick Business School, identified a number of areas of difficulty for SMEs in 2011: 32% had felt the effects of the downturn, 16% experienced cash flow difficulties and 12% struggled to obtain finance. 13% suffered from increased competition.
In the past two years, 28% of SMEs had faced unexpected costs due to compliance issues, the majority of which related to health and safety (68%), costing an average of £11,600 every year. 48% suffered from unanticipated business interruption from external factors, mainly due to the weather, extra bank holidays and IT and equipment failure at an average cost of £18,600 per year. These challenges have undeniably had a profound impact on SMEs: 46% said that the issues had constrained the growth of their business, 29% reported a threat to their long-term viability and 27% said these risks had reduced their ability to compete effectively.
However, some firms have been able to benefit from the challenging conditions. 38% experienced new opportunities over the past year as a result of risks relating to the economy and business interruption, with 27% saying they benefited due to others losing market share. SMEs are also taking calculated risks in order to boost growth, with only 7% describing themselves as risk averse over the next two years, compared with 16% over the previous two years. There is also a move away from bank loans (minus 8%) in favour of alternative funding. The average planned investment for the next two years is £102,000. Manufacturers plan to invest the most, with an average projected spend of £140,800.
Stephen Roper, Professor of Enterprise, and Director of the Centre for SMEs at Warwick Business School, commented: “The research demonstrates the robustness of small businesses. Small firms’ willingness to invest is strong, with an appreciation that renewing technology, equipment and skills is important for future growth. However, the road to recovery is unlikely to be smooth and SMEs must be aware of the risks that could knock their business off course. Taking positive action to mitigate these potential risks has never been more crucial. Only then can they focus on what is really important – maximising the opportunities available to them and making their enterprise a success.”
At SME Invoice Finance, we’re committed to supporting small businesses like yours, enabling you to make the most of the opportunities that come your way. Find out how we can provide you with the funds you need to help your business thrive in 2012 by calling us on 0800 083 8835 .
