SME transport and distribution industry to grow

61% of small to medium sized businesses plan to grow dramatically or moderately over the course of the next two years; just 4% of respondents thought that they would wind down or shrink.

By sector, transport and distribution businesses reported the highest confidence with 79% of respondents expecting growth according to the Albion Ventures’ report.

Regionally, SMEs in the South East and Yorkshire are the most confident about the future, with 66% expecting growth over the next two years. This is closely followed by North East businesses (65%) and London (64%).

The nationwide report further revealed:

• 39% of SMEs are looking to increase their headcount over the next year, with just 8% who are planning to cut jobs
• Finding skilled staff is now the second biggest challenge cited
• Business owners are getting increasingly concerned about their shortcomings in management expertise
• 62% of firms have taken steps to improve productivity in the past year – 86% among medium sized firms
• 50% expect to increase productivity over the next 12 months, with 36% expecting levels to stagnate
• 44% of Businesses have secured finance to grow this year – up from 26% in 2013 and 27% in 2014
• Bank loans and overdrafts as a source of external finance have fallen to 49% from 76% in 2013
• Using third party equity or other long term finance has risen from 6% in 2013 to 34% in 2015