Small business owners aiming for growth in 2007

Nearly half of all small and medium sized business owners in the UK (48%) view expanding their business as their top priority in 2007, with a further third (30%) looking to develop stronger customer relationships, according to the latest figures from Alliance & Leicester Commercial Bank’s Business Banking Observer.

The latest survey which looks at business owners’ views of the coming new year also found that overall business owners are more confident about the economy than they were this time last year. Nearly half of all respondents (48%) feel more or much more confident about the economic outlook than they did a year ago, while a quarter of SMEs (26 per cent) feel slightly or much less confident about the year ahead.

However, nearly a third (32%) of business owners say the economy will be the biggest challenge facing their enterprise in 2007. With finding the right staff and managing red tape also strong concerns for the new year, for 19% and 16%of small businesses respectively.

Customer Service and Staff Key to Success

Happily, small businesses have a clear idea how to counter the threats posed to their businesses: around half (47%) agree that the key to success in 2007 will be the strength of their customer service and a similar number (46%) see their staff as the key to realising their business potential next year.

Whatever their level of confidence and ambition, the majority of businesses (58%) agree that their business bank will be either important or very important to their success in 2007, and a quarter say they would need to speak to their bank a minimum of once every two months.

Steve Jennings, Director of Business Banking at Alliance & Leicester Commercial Bank, said: “It's really encouraging that so many small businesses are optimistic and ambitious about their prospects in 2007 and are planning for growth.

"Whilst this is great news, having the right finances in place is essential for sustaining business growth – having a supportive business bank behind you to help you meet your business objectives can make all the difference. The New Year is a perfect time to review your financial arrangements and I recommend that small businesses make a resolution to switch business banks if they aren't getting the deal that will enable their business to grow and fulfill its potential.”

Welsh businesses most confident and ambitious

The Business Banking Observer reveals that Welsh business owners are amongst the most confident about their business prospects for the New Year. While seven out of ten businesses in Wales are feeling confident about their prospects, North and North-east businesses are not so optimistic: only three in ten (31%) sharing that confidence.

The Welsh are also the most ambitious for 2007 with more than two thirds (69%) saying their key priority for the New Year will be growing their business. Small businesses in the North West and East Midlands are showing the least ambition (32% and 36% respectively).