WITH some signs that the worst of the recession may be over, a survey of small businesses demonstrates a return to optimism with 49% saying they plan to expand in the next 12 months.
In addition, about 34% are looking to stay the same size or consolidate, according to the findings of the Barclays Have Your Say survey.
More than 3,000 small businesses took part in the survey, making it one of the biggest of its type conducted during the recession.
Regional director of Barclays Local Business in the North East, Amanda Shepherd, said: “A large number of small businesses are poised to expand when the time is right, perhaps taking advantage of any upturn in the economy.
“A sizeable percentage are also not downsizing during the recession, which is an achievement in itself.
“Any decisions to expand should be carefully considered, but there are good reasons to expand at the right time.
“Companies with growth plans could be taking advantage of a completely different competitive landscape, where key competitors are missing or have downsized.”
When it comes to how long companies have been trading, it appears that younger companies are more likely to expand in the next 12 months, with 60% of businesses less than three years old considering expansion compared with about 40% of companies which have been in business more than 11 years.
There are differences across industries. The retail sector recorded the highest percentage of businesses intending to grow, at 54% compared with 46% in trade.
The research also looked at the skills firms believe they need more access to, with marketing top at 44% followed by sales skills at 32% and IT at 18%.
