Over three-quarters of SME owners are confident about the general outlook for this year, according to a survey of owner managed businesses by Moore Stephens, the Top Ten accountancy firm.
Moore Stephens, which has its Birmingham office on Calthorpe Road, found 77% of owner-managed businesses (OMBs) are confident about the outlook for this year – compared to 70% in 2015.
Almost three-quarters (73%) are confident about meeting revenue targets and 68% are confident about hitting profit targets – results consistent with those of the last two years.
Staff training is the top priority for OMBs to support growth, with 85% saying they are likely or certain to invest in training, while almost half (49%) of OMBs in this year’s survey say they are likely or certain to undertake succession planning in 2016.
Three risks dominate the worry list for OMBs – domestic competition (53%), the strength of the UK economy (52%) and employee skills shortages (45%).
When it comes to the UK’s membership of the European Union, 60% of OMBs surveyed said Britain should stay in, with just 17% supporting a ‘Brexit’.
Suk Aulak, partner at Moore Stephens, said: “OMBs are still confident about hitting revenue targets in the medium term, with the majority expecting turnover and net profitability to increase in 2016.
“However, there is uncertainty too, the report found that OMBs are cautiously optimistic about the year ahead and many are planning to expand their customer base, develop new products or services and increase marketing spend – while also seeking cost reductions.
“A small proportion have merger and acquisition activity high on the agenda (17%), as well as selling their business (16%) or expanding overseas (34%).
“Over 450 businesses contributed to the survey, so it provides a strong overview of the challenges and risks companies are expecting to face over the next year.”
Moore Stephens revealed the findings of its OMB report ‘Investing for success in 2016’ at a recent event held at the Radisson Blu Hotel Birmingham.
The launch also included an economic outlook report from Investec Wealth & Investment’s head of investment strategy, John Wyn-Evans.
