SME’s confidence for 2015 is undented by impending general election
Britain’s medium-sized businesses are expecting a strong 2015 for sales and investment and are continuing to recruit strongly thanks to 18 months of high optimism about the economy reveals the new Vistage Medium-Sized Business Confidence Index.
The research is based on responses by 445 CEOs, MDs and owners of largely medium-sized and larger-small businesses conducted by Vistage the leadership organisation for business owners.
Key findings from the latest Vistage Mid-Market Confidence Index include:
– About three-quarters of medium-sized businesses aim to expand their workforce in 2015 (with 27% polled expecting to recruit this quarter and just over a quarter intend to recruit steadily throughout 2015).
– Owners of British mittelstand businesses continue to be strongly optimistic about the forthcoming year. Nearly half (44%) expect the economy to improve, whereas only 9% expect it will get worse – a slight improvement on the high levels of confidence that appeared in Vistage’s previous research last quarter.
– They also felt that 2015 was on the whole going to be a much better year for the UK economy, with almost two-thirds (63%) expecting improved economic conditions compared and a third expecting things to remain the same.
– The expansion of the workforce at most medium-sized businesses is being driven by strong expectations that the better economic times will translate into sales – with a massive 80% expecting an increase in sales revenue over 2015 (13% expect sales to remain about the same, 5% expect them to fall).
– Over half (53%) expect their total fixed (capital) investment expenditures will rise over the next year, while just over one-third (35%) predict their investment levels will stay constant and only 8% expect less – similar to the research in Q4).
– Almost two-thirds (63%) expect their company’s profitability will increase over the next year, with only 8% expecting lower profit.
Steve Gilroy, CEO of Vistage, said: “2014 was a good year for most SME businesses and the owners of Britain’s mid-market businesses are expecting the same again in 2015.
“UK mittlestand businesses have capitalised on a stronger economy, and will continue to do so in 2015 with most have plans to invest strongly in capital assets and create more jobs.
“Regardless of the impending general election, the UK’s medium-sized businesses’ owners are generally expecting another strong performance this year.
“This is good news for the whole economy. While entrepreneurial start-ups are great for the future, most remain small and create few jobs. By contrast, many medium-sized businesses are job-creation engines and big investors when the conditions are right… as they are now!”
