27 November 2013

90% of entrepreneurs expect business to grow

Half of business owners think their revenues will rise by almost 1/3 in the next year according to a new study, indicating confidence in the economy.

Nine out of 10 entrepreneurs expect to make more money over the next year, according to a survey by Youth Business International (YBI) and the Kauffman Foundation

The results of the 2013 survey is more optimistic than research carried out in previous years, and is a positive nod suggesting that people’s confidence in the economy is starting to return. It also provides a much rosier picture than a recent study carried out by accountancy firm Baker Tilly.

New businesses looming

Other highlights of the YBI study include:

  • Half of business owners think their revenues will rise by almost a third.
  • Almost one in three are feeling so happy about the future that they are planning to start another business in the next 12 months.
  • More than three out of four aim to take on up to 20 employees within their first three years.
  • 45% of those polled say they have no problem hiring workers with the right skills and talents.
  • And 69% are happy with the amount of business advice and mentoring available to them.

The 2012 survey showed a much more pessimistic outlook, with more than a third of business owners saying they had seriously considered shutting down their venture and trying to get a job. More than two thirds of people running small and start-up businesses quizzed in 2012 believed things had got worse since 2010.

Light at the end of the tunnel

Andrew Devenport, Chief Executive of YBI, says: “It’s encouraging to know that there is light at the end of the tunnel for UK entrepreneurship, with one in two business owners expecting their revenue to rocket in the next few years, higher than the overall global average. And this trend extends to the experiences we have seen across our global network too, with Australia, Barbados and Canada all predicting success and growth to a similar degree.”

The poll also reveals people are feeling positive about being able to get hold of business funding. It claims 43% found they were able to access business finance on reasonable terms, up from 31% in 2012.

But the study did highlight some areas where improvement is needed. Four out of 10 entrepreneurs say they struggle to access resources like energy, transport and communications services at a reasonable price.

And not enough UK entrepreneurs are taking advantage of the opportunities offered by exporting. Just 23% of those who took part in the poll export their products with almost half saying they either haven’t considered exporting or don’t think they would be able to do it.