The number of people leaving the rat race to start their own company has grown throughout the recession and new business incorporations reached their five year peak in March this year at 54,336.
A survey by Bibby Financial Services today reveals that 24 per cent of businesses with a turnover of less than ?25m see increasing competition as their greatest threat. Jim Doherty, the FD of SBS, a Wirral-based facilities management company, said that the industry is becoming increasingly competitive.
He said: ?We have definitely seen an increase in competition over the last few years, which has caused an increasing downward pressure on margins. As the sector is a combination of a few large players and many smaller companies ? most have less than 10 employees ? the larger businesses tend to buy out the smaller ones and contracts move around a lot, making it a very fluid sector. ?This fluidity and pressure on prices means all smaller companies have had to raise their game to win contracts.? Other threats identified in the survey include the rising cost of materials (15 per cent), red tape (13 per cent), access to funding (9 per cent) and difficulty finding skilled staff (8 per cent). David Postings, UK CEO of Bibby Financial Services, said: ?This is certainly a different picture from just a few years ago and the UK 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.? Related: How to stay ahead of your business competitorsImage source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.