Member Article

'Post-recession start ups are the biggest threat to Yorkshire SME's' says Bibby

Competition from post-recession start-ups is the biggest threat to one-in-four SMEs in Yorkshire and Humberside, research by business funder Bibby Financial Services has revealed.

As official data showed the number of new UK businesses reached a five year peak in March this year, small businesses in Yorkshire and Humberside listed ‘increased competition’ as their biggest fear in today’s brightening financial climate.

The SME Tracker, which surveys businesses with a turnover of up to £25 million and up to 250 employees, saw 26% of businesses in Yorkshire and Humberside citing an increase in competition, which has come about as a result of the improving economy, as their biggest worry today.

Almost one in ten (9%) believed that red-tape is the biggest challenge they face.

Mark Storey, MD for Bibby Financial Services Yorkshire and Humberside, said: “This is certainly a different picture from just a few years ago and Yorkshire and Humberside has returned to its position as a breeding ground for innovation and entrepreneurship.

“The economic downturn has fostered a DIY ethos in the country, which is now paying dividends for the economy through both recruitment and output.”

Other concerns from SMEs in Yorkshire and Humberside include a lack of skilled staff (8%), rising raw material costs (14% and access to finance (4%).

According to official data from Companies House, there were 54,336 UK incorporations in March and figures have been steadily rising since 2009.

Storey said the findings are positive but advised start-up business owners to ensure they plan ahead in the early days to ensure they can steal a march on the competition.

Separate findings highlight the changing composition of the country’s business population and government statistics released in January show the UK’s creative industries – worth £71.4 billion in 2012 – are growing at around 10%per year, outperforming all other sectors.

Employing almost 1.7million people, according to the Department for Culture, Media and Sport, the sector includes advertising and marketing, publishing, IT software and computer services, product, fashion and graphic design and film and TV.

This was posted in Bdaily's Members' News section by Clare Burnett .