Since the recession began, you couldn’t open a paper or switch on the television without being confronted by some story proclaiming the death of the small business and company formation sector. And, let face it, small businesses have undoubtedly been at the front line of the recession. However, are thing about to get a whole lot better?
Well, according to City business analysts, despite the fact that small businesses will be under increasing pressure due to planned VAT increases and the closure of the government’s ‘Time to Pay’ scheme, the profitability of small businesses are predicted to rise.
According to a survey by financial planning company ‘JJF Consultants’, experts predict that small business will increase their turnover by 20% from 2009. The survey also suggested that as access to finance becomes more widely available, most small businesses are looking to re-invest in the future of their company.
Richard Kitchen, managing partner at JJF Consultants, comments ; “The pressure the recession has put on small business is undeniable , however, from the feedback we have received from our client its seems that small business and company formation owners have used the recession as an opportunity to cut costs and create effective cash flow management systems. Consequently, they have proved that they are worthy of investment in the future which will help fund growth and ultimately increase profitability.”