Businesses confident of growth

15/04/2008

Small businesses are reacting confidently to the credit crunch despite the pressures, a new report has found.

When asked if they would start again in today’s economic climate, more than one in six small businesses said they ‘would do it all again tomorrow’, according to a report by The Credit Show.

The survey also found that the average small business plans to expand its sales by over half in the coming year, with just under half planning to expand into a new area and more than a third saying they will recruit new staff.

More than one in three plan to launch a new product or service, with just 1% saying they will scale back their operations. Over three quarters said they were confident about the future of their business.

Kamala Panday, publisher of Credit Today, said although the credit crunch is beginning to bite for some, for many, growth has not been affected.

“Businesses are now playing a more strategic game, with over half admitting to chasing slower payers more vigorously.

However, she warned young businesses to take care.

“The flip side of rapid expansion is greater business exposure, which could cause problems considering the current climate. If they are going to move into new markets more actively, they should do so with good credit management procedures in place, otherwise they could come unstuck,” she said.