UK small businesses think 2010 will be a successful year.

A survey by O2 of 3,000 small business proprietors found a positive attitude towards the business climate for this year. 25% say they are in a better financial position than a year ago and 32% said they were more confident than they were a year ago. 

The survey found that many small firms had tightened their operations over the last year. 39% reported that they had reduced staff numbers compared to 1% last June. In addition, many have reduced stock, improved payment arrangements with the firms who supply them, and taken a more prudent approach to granting credit. 

They also said that not increasing staff wages and not paying for employee holidays had assisted them. 

59% expect to do better this year than in 2009 and 35% anticipate enhanced profits in the first quarter of this year. 

69% said that their main worry is the state of the economy which is still in recession; however Treasury expects growth to be 1% to 1.5% in 2010. Concern was also expressed about an increase in tax and interest rates and the lack of finance available from banks. 

62% of the small business owners said the depreciation of the pound had not affected them and 12% said it had helped their business with better returns from exports. 

65% said that investment in technology had assisted with improved productivity with 44% said that mobile phones and mobile internet connectivity had made a major contribution. 66% said they will keep their investment in technology at the same level and 16% said they would increase their spending. 

So the economic recession has made UK small businesses more efficient and ready to benefit from the anticipated return to positive growth. 

We help by providing qualified prospects to them at no cost from our Local Search facility in our UK Business Directory. Most of the 1.6 million businesses listed are small firms.

 

Monte Huebsch, CEO