Nearly half of all small businesses expect to expand over the next five years, new research reveals.
According to a survey by the Open University Business School, over a third of those expecting growth have seen an increase in sales, despite the condition of the UK economy as a whole.
The biggest improvements were seen in the hotel, restaurant and retail sectors. The research also revealed that despite rising national unemployment levels, 62% have not changed staff numbers during the past 12 months.
Colin Gray, professor of enterprise development at the Open University Business School, said:
“These second quarter results show the mood of UK small businesses as one of cautious optimism. The decline appears to have slowed and may be levelling out and points to small businesses having a very different experience of recession.”
Other findings in the survey include a regional difference in motivations for starting a business. Business owners in the South West and Scotland are most motivated by a desire to work for themselves.
London business owners are most likely to start up as a result of a lack of alternative employment options. However, respondents in the North East and North West were mostly motivated by a desire to make money.
© Crimson Business Ltd. 2009