Small UK businesses hoping to expand in 2016, says expert

Small UK businesses are hoping to expand in 2016, according to Simply Business writer Jade Wimbledon. Wimbledon provided several predictions for UK businesses in 2016, listing growth as one of the top trends.

Recent research from Close Brothers Asset Finance showed that around 1.35 million SMEs are planning to expand over the new few months, with 20% believing that their business is performing well in the current economy.

However, Wimbledon pointed out that the number of businesses that manage to expand is much lower, with a third struggling to find finance. This means that 2016 could see more businesses turning to methods such as peer-to-peer lending to fund their business.

Demand

According to Wimbledon, online shopping will continue to be popular in 2016, with ecommerce businesses bringing in new features and apps as mobile devices continue to grow in popularity.

The ongoing problem of a skills shortage means that there may not be enough bricklayers, builders and decorators to keep up with demands.

“As a result, in 2016 many tradesmen will probably be picky about the work they take and may put their prices up. The shortage may also slow down the rate at which new homes can be built,” Wimbledon said.

She added that this is good news for those planning to set up their own business as a tradesman, and that 2016 may be a good time to consider training.

Damage

Wimbledon also predicted that 2016 will bring challenges to small businesses as a result of the recent problems with floods and storms causing damage to business premises.

With the Government stating that dry summers and wet winters are set to continue as a result of climate change, business may continue to face problems.

Wimbledon went on to advise small companies to make sure that they have insurance to protect their business.