THE CREDIT SHOW REPORT
Monday, 14th April 2008
With the ever-increasing dominance of the supermarkets and out of town retail parks, plus the heavy burden of business rates, the future of the small and medium sized businesses operating in the retail sector are feeling the pressures more than ever.
However despite this customer downturn, and tough trading condition for retailers, many small and medium sized businesses (SMEs) appear to be reacting bullishly to the credit crunch. When asked if they had to start their business again in today’s economic climate, 61% of SMEs would do it all again tomorrow, of which 45% of retailers said yes to the same question.
The research by The Credit Show, the UK’s largest exhibition and conference dedicated to professionals associated with the consumer and commercial credit arena, shows that SMEs on the whole plan to expand sales in the UK on average 56% in the coming year.
The study is based on detailed online interviews with 117 small and medium sized businesses. The businesses were drawn from across the UK and from a mix of sectors.
In general, the study paints a picture of an SME community in bullish mood. Just under half plan to expand into a new area in the next 12 months and a further 37% will recruit new staff. Over one in three plan to launch a new product or service and only 1% plan to scale back their operations. Indeed when asked to state their future optimism, over three quarters (78%) of SMEs said they were confident about the future of their business, with 72% of retailers also agreeing to this.
The survey highlights a real audience split with some SMEs noticing the effects of the credit crunch on their business and others seemingly untouched. For instance, the report showed that 28% say that they are now finding it harder to borrow from the bank, whilst 38% of respondents from the same survey admitted to not noticing the credit crunch.
To download a copy of The Credit Show’s ‘Credit Crunch and its impacts on SMEs 2008’ report, visit: www.creditshow.co.uk.