SMES In IT and Telecoms Planning For Future Growth
Over half of SMEs in the IT and Telecoms sector plan to launch new products to boost their growth
Small and medium-sized enterprises (SMEs) in the IT & Telecoms sector are planning to invest for future growth, according to new research from specialist lending and savings Bank, Aldermore. The new data show SMEs are proactively looking for opportunities to grow over the next five years.
The Aldermore SME Outlook 2016 found that half (50%) of businesses surveyed in the IT and Telecoms sector intend to hire more staff over the next five years to foster growth, while 47% plan to invest in new technology to increase productivity.
Furthermore, 20% of SMEs in the IT and Telecoms sector intend to grow by joining forces with another business either through a merger or acquisition. Only 8% of those questioned claimed that they will not be taking positive action in order to grow their business. With 92% of respondents, the vast majority of small and medium firms in the retail sector are in the growth business and making firm plans to achieve it.
Despite a slowing world economy and increasing uncertainty about the future path of the UK economy, partly due to the upcoming EU referendum, the results show that SMEs in the IT and Telecoms sector are confident that investing in their businesses is the best way forward to strengthen their position in the market. With a significant proportion of SMEs intending to hire new staff, prospects for the job market in retail look set to remain strong.
Andrew Dixon, Aldermore’s Commercial Director, Specialist Finance commented on the findings.
“It’s clear that SMEs in the IT & Telecoms sector are being proactive and have strong plans in place to grow their business over the next five years. Not only are they intending to promote their business through increased marketing activity but they are also taking steps to launch new products and hire new staff.
“Whether this is despite of or in reaction to the upcoming uncertainty brought on by the EU referendum is difficult to gauge. However, what is clear is that, these steps will serve to increase the ability of SMEs in IT and Telecoms to continue driving economic growth locally and throughout the wider UK economy.”