Most entrepreneurs expect their businesses to grow quickly over the next three years revealing high levels of optimism amongst business leaders, according to a new poll.
Over half of the small business owners polled by Finance Wales said they expected at least a 25% growth in gross profits in three years, and a quarter expect a huge 70% growth.
The biggest worry for the small business owners is managing cash flow, followed by the recruiting and retaining of staff and growing without losing control, the survey found.
Raising further finance was ranked fifth in the list of their biggest concerns, despite the existence of the widely reported ‘equity gap’.
However, advisors to small businesses tend to view things rather differently: most felt that the majority of owners operate within an annual budget only, and did not have detailed plans for growth.
Also, while advisors to small businesses, while supporting the belief that funding for growth is not a critical problem for new firms, stressed the difficulties associated with rapid growth.
Contrary to their view, the survey found that 65% of business owners claimed to have an explicit three-year strategy for growth, including a plan for increasing management capacity.
Peter Wright, investment director at Finance Wales, said: “Small firms are the key drivers of any regional economy and it is heartening to see that the majority are hugely buoyant about the growth opportunities they face.”
© Crimson Business Ltd. 2006