According to a recent report the majority of small and medium enterprises are concentrating on growth in the next 12 months, despite the recent problems in the economy. The main strategy for 95 percent of SMEs is to achieve growth in the coming year, demonstrating a high level of confidence in their expectations.
Most SMEs not only expect to survive the next 12 months, but also expect to achieve a 10 percent growth rate. The report demonstrated two business types which have their own method for achieving growth during the year; Accelerators storm ahead and expect to achieve growth levels which are outside the boundaries for their industry, while Stabilisers concentrate on a steadier growth rate which is along the same line as others in their industry. The report which was commissioned by SME & Channels SAP UKI, revealed that more than 80 percent of SMEs are confident that they will achieve their expected level of growth, while almost half expect to achieve more than 10 percent growth.
More than 40 percent of SMEs consider growth during the next year to be more important than commercial stability. The factors for growth were cited as innovation, technology, management and money and finance. The report reveals a positive outlook from SMEs, despite uncertainty in the economy. Planning a growth strategy with a medium and small business accountancy will involve tax efficiency and planning for the year ahead. Minimising the tax bill for a business will enable more capital to be invested in future development.