Small firms 'not planning ahead'

The majority of small firms in the UK are not planning ahead, according to new research published this morning (February 13th).

npower found that six of the ten businesses it questioned are only looking between six and 12 months ahead because of the uncertain economic climate.

Furthermore, the firm revealed that 55 per cent of businesses said they wish they could plan ahead sooner, because of long-term business organisation.

Phil Scholes, SME Markets Director at npower, explained that energy is one area in which firms could plan ahead and limit cost increases.

"It is encouraging to see many SMEs wish they could plan further ahead," he noted. "While the stability of the economy, which many SMEs cite as a key barrier to forward planning, is not something businesses can control, there are some steps they can take to help."

It comes after Business Secretary Vince Cable bemoaned a fall in small firm loans, despite the introduction of the Funding for Lending Scheme.

Posted by Thomas Fletcher

Date published 13 Feb 2013 | Last updated 13 Feb 2013