- 2 in 5 small technology businesses fear they will not see the end of 2013
- Two fifths of businesses believe the economy will stay the same
- 24 per cent of construction firms cite finding new business will be biggest spend of 2013
Independent technology businesses are facing the harsh reality of the current economic climate with one in five small business owners in the sector believing they will be forced to shut down their business by the end of 2013.
The independent quarterly research conducted by leading supplier to small businesses, Viking with 1,000 small business owners and Managing Directors in the UK and Northern Ireland revealed that 42 per cent of respondents in the construction sector believe the economic climate will remain the same within the first three to six months of the year – below the national average of 50 per cent. This is in comparison to businesses in construction, healthcare and automotive sectors where more than a third of managers are predicting a more profitable first quarter.
And while some are conceding defeat others are looking to fight their way into the black in 2013. The report revealed that business owners still remain focused, with just under a quarter (24 per cent) noting that securing new business will be the biggest spend in 2013 for their company.
Start-up businesses (up to three years old) are more optimistic with 78 per cent saying that they are planning on expanding their business within the next 12 months, compared to only 39 per cent of longer established businesses.
Sean Bailey at Viking said: “The start of the New Year should be a time for optimism but for many businesses this is not necessary the case this year. We already know from the latest GDP figures that the economy isn’t in growth and from our research we know that there are small businesses having to contemplate potentially giving up there business which is an extremely daunting prospect for them. However from the report we can also see that SMEs are still very much determined to find a way out of these difficult circumstances, despite the poor economic climate.”
Regarding support received from the government, 38 per cent of respondents from the independent retail sector highlighted that the cap on fuel duty looks set to have the most positive effect on their business, while greater funding for Local Enterprise Partnerships and an increase in annual investment allowance were deemed to have no impact at all (10 per cent combined).
The Viking Small Business Barometer is a quarterly tracker survey, which speaks to the same 1,000 small business owners and Managing Directors across fifteen sectors in the UK, every quarter in order to understand the pressures currently on our small businesses, which employ 14.1 million in this country and are seen as the key to economic recovery.
Last quarter’s research revealed that nearly one in five small business owners admitted to having to sell or remortgage their home in order to gain enough capital to start-up or run a business, this figure has halved (nine per cent) in this quarter.