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Join for free![Confidence reboots as a fifth of UK small businesses expect to grow in the next 12 months [REPORT]](https://a.storyblok.com/f/102007/1152x648/b430978e27/enterprise-nation-small-business-barometer-q3-2024.jpg/m/filters:quality(90))
Posted: Tue 20th Aug 2024
Small businesses are picking up momentum with a strong growth forecast for the next 12 months.
The latest Enterprise Nation Small Business Barometer found a fifth of small businesses (20%) said they are now expecting to reboot growth plans, up seven percentage points from 12 months ago.
It also found of those with growth plans, 34% expected to grow by around a quarter, which could deliver a boost of more than £40bn to the economy at a crucial moment.
The analysis found almost (45%) half of those surveyed in late July were looking to seek investment to fuel growth plans.
While only just over one in 10 (16%) say they are currently exporting, the rate was up by two percentage points from this time last year. Firms founded by men (20%) were almost twice as likely to export as those launched by women (13%).
Of those that weren't already exporting, one in five (20%) said they would like to, and 10% of those that export said they would like to increase overseas sales.
The report also looked at digital confidence and found almost half (44%) now describe their business as 'digital', up by one per centage point on last year.
But while they are partly embracing the digital world, a third (29%) say they have purchased technology they don't have time to use. That rose to 41% in Scotland.
Half said they had found business support online, but 34% said they couldn't find access to business support that worked for them.
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Small businesses see persistent cost pressures on consumer pockets as the biggest challenge moving forward (42%) as well as late payments, with 23% saying they are still often paid late for their goods and services.
The majority (60%) warned that the current tax burden on small businesses is already too high, suggesting any tax hikes in the Autumn Budget could have a negative impact on confidence as well as profits.
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Emma Jones CBE, founder and CEO of Enterprise Nation, said:
"It's refreshing to see confidence return after the recessionary pressures of 12 months ago, followed by the unavoidable political turbulence caused by the General Election.
"Entrepreneurs are often at their strongest in the face of adversity, so after putting growth plans on hold during an extremely difficult set of challenges, they can finally see the light at the end of a very long tunnel.
"One key finding is that while small businesses are embracing digital tools, they still need support to take their skills to the next level and help them use their technology more efficiently.
"Small businesses will play an important role as we reboot the economy, as we've demonstrated here with a modest upturn. So it's more important than ever to create clear and easy routes to help them find the support they need to grow."
The analysis also found one in five (20%) entrepreneurs are still frustrated at the lack of access to adequate space they need to run their businesses, be that business units, co working spaces or high street pop-ups.
The problem was felt most keenly in Scotland (29%) followed by the North West (25%) and the West Midlands (23%).
This figure has remained a persistent problem for two years with no movement, the analysis found.
While overall, 44% of business described themselves as digital, there was a stark disparity between businesses run by women with only 37% describing themselves as digital versus and male founded businesses (52%).
Only 26% of female-founded businesses said they had invested in technology they didn't have time to use, compared to 33% of male founded businesses, suggesting women are not investing in new technology at the same rate as men.
