More than half of SMEs expect to grow in 2022

Latest findings have shown that the UK’s SME business growth aspirations are back to pre-pandemic levels with over half expecting to grow in 2022.

However, according to the FSB’s Small Business Index (SBI), many smaller sized firms are being held back due to recruiting struggles, increasing costs and a lack of access to finance.

FSB National Chairman Mike Cherry, commented, “After two years of turmoil, in which firms have once again shown their adaptability and resilience, the small business community stands ready to spur our economic recovery. The majority intend to grow over the coming 12 months, and many are looking to increase headcounts.

“Their optimism is, however, hampered by spiralling inflation, labour shortages and looming tax grabs. Come April, they’ll be faced with a jobs tax hike, an increase in dividend taxation and fresh business rates bills.”

Cherry added, “We urgently need the government to start looking closely at the policies that will empower the small business community to spur our recovery from this recession as it did the last. The growth intentions are there, but we need the right support to turn vision into reality.

“The bounce back loan initiative was a real success, but it can’t be thought of as job done. New enterprises are launched every day across the UK, never more so than at times like this when the economy is changing apace. Our start-ups need funding to go on and be the employers and innovators of tomorrow.

“After the financial crash we saw banks pull up the drawbridge for small businesses. With emergency loan initiatives and the New Enterprise Allowance at an end, it’s vital that this trend doesn’t take hold once again.”

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