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Five percent of SMEs are key to UK economic growth
Growth forecast could be brighter than expected
There might be some good news for business on Wednesday 15th May when it is believed that the Bank of England could positively revise its growth forecasts in its quarterly Inflation Report.
Although growth has been minimal in the year to date, it has at least been creeping in the right direction and this could be viewed as a sign that the UK is moving towards economic recovery. With Inflation Reports used as assessments of the prospects for UK inflation, any positive revision to growth forecasts for the year will certainly have a major impact on small businesses.
With a triple-dip recession narrowly averted, and recent growth in sectors such as services, the signs are definitely pointing in the direction of recovery. A revised growth forecast would be yet another boost to the fragile economy.
Why sound principles make good business sense
Big contracts from big corporates may seem irresistibly tempting - but late payment or extended terms can spell disaster for SMEs.
Businesses are risking failure due to cashflow: a situation that can be averted with good forecasting.
UK exporters need greater reach, says report
UK businesses planning to export may benefit from looking beyond the EU, according the latest economic report by credit insurance company Coface. Compiled by Coface’s Economic Research Department, the report analyses 6,000 companies in three regions – the EU, North America and Emerging Asia – to provide an overview of 14 key economic sectors including textiles, services and electronics.
Pharmaceuticals, energy and maritime air and transport emerged as the most robust sectors in terms of credit risk, while construction, metallurgy and distribution represent the greatest risk, particularly in Southern Europe.
The report also examines activity among UK retailers struggling to accommodate e-commerce into their business model. “This is driving the move, by the retail sector, towards a single economic model converging bricks and mortar and digital commerce,” says the report. “However, this transition is a source of risk: a technological shock of this kind forces businesses to transform themselves or to suffer the consequences of natural selection.”
Breakthrough’s trade missions can help you cross the foreign market barrier.
How nine companies gained market intelligence from a Breakthrough trade mission to the US
Business Editor Dan Matthews examines how to assess the risks associated with doing business internationally.
Businesses looking for a better deal in Europe
British business owners are backing the Prime Minister’s pledge to secure new terms for Britain’s EU membership.
As David Cameron presses on with plans to hold a referendum on the future of Britain’s inclusion in the European Union, the Business for Britain campaign is fully supporting plans to renegotiate the terms of Britain’s membership in the meantime. Many businesses believe a lack of flexibility and autonomy have had a negative impact on business growth and that more needs to be done to support British businesses. The group is determined to see the power shift back to business owners, who are currently answerable to the EU for many key decisions.
However, not all business leaders approve of the plans. Many believe that renegotiating the terms of Britain’s membership in the EU will create barriers for British businesses and lead to tension between leaders at a time of continued financial uncertainty. According to the Chairman of Business for New Europe, Roland Rudd, “Calling for unilateral British opt-outs will only serve to isolate Britain further amongst EU leaders in the midst of a Eurozone crisis, and leave the Prime Minister unable to reach any agreement at all.”
Cold snap drives retail buyers online
The relentlessly miserable weather that blighted March 2013 may have driven many retail customers online rather than in-store, according to figures released in April by the Office for National Statistics. Non-food retailers including department, clothing and household goods stores believe the wintery conditions have dampened the start of their Spring sales drive. According to the latest ONS statistical bulletin, based on a monthly survey of 5,000 UK retailers, the non-food retail sector saw a 2.6% year-on-year decrease in the quantity of goods purchased, while the overall proportion of non-seasonally adjusted online sales remained high at 10.4% according to feedback from large retailers.
“The fall in retail sales is disappointing and provides further confirmation that the UK's economic performance remains far too weak,” said John Longworth, Director General of the British Chambers of Commerce. “Although it is possible that the UK economy may narrowly avoid entering a new recession, the weak economic climate means that the outlook for retailers is likely to remain challenging for some time. Against this backdrop, we urge the Government to do all it can to help support enterprise and wealth-creation and open up new opportunities for UK firms to exploit both at home and abroad.”
Breakthrough Growth Capital aims to provide fast-growth SMEs with the finance they need in order to grow.
Businesses that put together a coherent application can win out when it comes to attracting a lender
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See if you are eligible to be considered for Breakthrough capital funding and register your interest.
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