Global increase in confidence among SMEs
8th September 2014 | News
Confidence among small businesses has grown on a global scale according to the sixth annual Hiscox DNA of an Entrepreneur study.
Small firms across the world reported a rise in profitability and hiring activity in the survey that’s designed to offer an “insight” into the mood and financial stability of the SME sector.
The study quizzed 3,500 small business owners with less than 50 employees across a host of nations including the UK, Germany, Spain, the Netherlands and the United States.
Almost half (45 per cent) of respondents reported revenue growth in 2013; while there was an overall rise in 2014 optimism with 47 per cent of UK respondents confident about the future.
The study suggested an uptake in recruitment too, with 18 per cent of SMEs having added staff over the last year compared to 11 per cent the previous year. 14 per cent of respondents already planned to take on new staff in 2014/15.
The number of start-ups launched since the global recession has soared with 38 per cent of companies interviewed launched on or after 2007/08. More than half of these ‘recession start-ups’ were created by female entrepreneurs.
Despite the growth in confidence and overall business optimism, more than a third (34 per cent) of SME owners feared being unable to attract new customers, while 31 per cent were sceptical regarding the government’s ability to support small businesses.
Bronek Masojada, CEO of Hiscox, said: "The findings indicate that the grit and determination small business owners have shown in previous years’ studies is paying off.
"This is particularly apparent in the performance of small firms set up during the recession, which appear to be playing a key role in driving economic recovery.
"This is immensely encouraging not only for small business owners, but for anyone with an interest in the small business sector – from policy-makers to academics."
Image: Mark Doliner