Economic recovery sets UK SMEs business confidence soaring

SMEs in the UK are feeling the positive effects of the upturn in the economy, according to a new survey.

The research, conducted by Survey Mechanics on behalf of lead generation firm GSA Business Development, claims that 86% of small businesses have increased their sales in the past 12 months.

Besides this, the report says that participants, 200 UK SME owners, also expect sales figures to continue rising over the next year.

“The growth is being generated in large part by increased marketing activity, showing that these businesses are finally feeling less cautious and confident enough to invest,” claimed Jonathan Silver, GSA managing director.

“In particular, they are spending on online marketing including refreshing their websites and also in social media,” he added.

Of those polled, 66 per cent said that they are getting most new business from referrals, claiming that marketing effort was focused on combining online channels.

Respondents also said that they were using old lead generation methods like securing referrals and recommendations from existing customers, while networking to meet new ones.

The survey also claims that SMEs in the country are optimistic about the economy, with 81 per cent saying it will improve over the next 12 months and this increase business confidence.

Improving economic prospects also led 78 per cent of participants to say that consumer confidence was also increased.

“Businesses are clearly gearing up for economic growth now, and while half of them are getting new business from organic market growth, these companies are really working hard for new business,” claimed Peter Martin at Survey Mechanics.