A recent study has indicated to the Turner Little team that nearly half of small and medium sized enterprises (SMEs) in the UK expect their revenue to grow this year.
Growth mindset
The UK’s economy strengthened in 2015, and this bolstered the growth expectations of SME owners around the country. The latest quarterly British Business Barometer from business finance solution provider Hitachi Capital suggested that 40% of the 1,021 UK small businesses polled expected to expand in the final quarter of 2015. Only 36% said the same in the last quarter of 2014.
Expansion expectations
New research from alternative finance provider Fleximize has suggested that this ‘growth mindset’ has carried through to 2016. The company surveyed 129 small business owners and 49% said they expect their revenue to expand throughout the next 12 months, compared with just 16% who believe their company’s revenue will decline in the same period.
Meanwhile, online publication Smallbusiness reported that 35% of SME leaders polled by the study described the ‘financial health’ of their business as ‘good,’ while 4% admitted that it’s ‘excellent.’ In contrast, just one in ten small business heads said that their firm’s financial health is either ‘poor’ or ‘very poor.’
Alternative finance
Fleximize further found that 23% of respondents want to secure more funding in 2016 than they amassed the year before; only 8% said they believed they’d need less credit this year. Commenting on how small companies will be able to find the funding they need to expand in 2016, Fleximize founder and managing partner Max Chmyshuk said:
“Banks are turning down around one in five credit applications from small businesses, and just under one in ten from medium-sized enterprises, and this is fuelling demand for alternative sources of finance. Indeed, this year the UK alternative lending market has been providing over £211 million of credit to businesses and individuals every month, more than double the average monthly figure for 2014.”
Turner Little
The Fleximize study suggested that the rise of the alternative finance sector is supplying the UK’s SME community with the funding opportunities needed to support revenue expansion. If you’re looking to utilise alternative funding to aid your business growth in 2016, ensure you have the infrastructure you need to manage your finances effectively.
Turner Little offers the professional UK banking services required to ensure you can boost your firm’s revenue stream this year. Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agents, Registered Bank Intermediaries and Business Consultants, as well as Trust providers.
