Almost One In Four Small Business Focusing On Expansion In Next Three Months

An increasing number of SMEs are looking to expand their businesses, with almost one in four focusing on significant expansion in the next three months, new research has found.

According to Hitachi Capital's British Business Barometer, the current figure of 24% is a substantial increase on the 13% of businesses looking to expand during the fourth quarter of 2014.

SMEs are generally optimistic for growth, with 38% of small and medium-sized businesses confident that the next three months will be positive in this regard. However, larger businesses seem to be losing confidence, with only 6% expecting growth compared to 18% last year.

The manufacturing sector is the fastest growing for SMEs, with 43% in the sector focusing on significant expansion, up from 35% in the last quarter of 2014.

Gavin Wraith-Carter, General Manager at Hitachi Capital Business Finance, said: "It is particularly interesting that the research this quarter has highlighted the huge surge in confidence among SME startups.

"These businesses are essential to driving innovation and will, over time, develop into strong contributors to our economy and I hope to see this sector continue to thrive and evolve into more established SMEs."

Expert Opinion

This research highlights how many small businesses are looking positively towards the future and, as a result, have ambitious plans to develop their products and services. <br/> <br/>"Small businesses have a hugely important role to play in the economy and their growing confidence can only be a good thing. However, it is important that SMEs bear in mind just how important advice from third parties can be in helping them achieve their objectives. <br/> <br/>"We would urge them to ensure they speak to legal advisers to ensure that their houses are in order and they meet any regulatory requirements which are thrown up by their future plans." Fergal Dowling - Partner