With new research showing that the majority of UK SME’s don’t last beyond the five year point, this week Axis Telecoms reveals how to make sure your small company survives long-term.
You Need to Develop a Business which is Successful Long-Term
Axis Telecoms is an independent telecoms and energy supplier, who are determined to deliver the best utilities deals available, to small companies spanning the entire length of the UK.
As such, we want to make sure that you develop a small company which will prove successful in the long-term, so that it benefits you as a business owner. That is why we felt it vital to tell you this week, about a new study revealing that most UK SME’s fail before hitting the five year mark.
Why Do Small Business Leaders See a Lack of Growth Opportunity?
According to Smallbusiness.co.uk, the finding was discovered in a study called Growing Pains; conducted by RSA (an insurer), to determine the barriers to growth for SME’s. It showed that 55% of SME in this country don’t last more than five years.
Furthermore, it showed that 61% of respondents don’t feel confident about growing their business over three years, and 69% believe it’s hard to convert a small business into a medium sized one. When asked why, the most common answer amongst respondents was the country’s tax system (44%). This was followed by a lack of financial lending (38%), too much red tape (36%) and the price of running a business (36%).
Driving Growth and Giving SME Leaders Confidence
In explaining these findings, David Swigciski, the RSA’s SME trading director, suggested that they show the government needs to do more to facilitate SME growth. Swigciski argued:
“The UK economy relies on a balance between start-ups and high-growth businesses, but our research reveals a worrying imbalance and there remain major barriers to achieving growth.
“Now is the time for the government to understand what’s really holding small businesses back and to ensure that they are coming up with the right incentives to drive growth and give businesses confidence.”
Develop a Long-Term Growth Strategy
Therefore, it appears that the government need to promote policies that foster a friendlier environment for SME’s, to ensure their long-term growth. However, Axis Telecoms would suggest that knowledge is power. Now you know why small businesses are folding before the five year point, you can develop an effective long-term growth strategy to ensure it doesn’t happen to yours.