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For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Mixed picture on the post-lockdown bounce back

21 July 2020

Studies by business organisations suggest that SME confidence is rising but many firms still plan to make redundancies.

There are encouraging signs of a bounce back as the proportion of UK small businesses predicting growth has almost doubled in just three months - from 14% to 27% - according to the latest quarterly tracking study by Hitachi Capital Business Finance.

It means that one in ten firms now fear failure compared to close to a third of small businesses three months ago. The findings show that:

  • 23% predict moderate expansion (up from 10% in the previous quarter);
  • 43% expect no change (up from 26%);
  • 19% expect a contraction (down from 31%);
  • 11% fear business collapse (down from 29%).

By sector, the IT/telecoms sector has the highest proportion of small businesses that are predicting growth for the three months to the end of September (44%). The biggest rises in confidence since lockdown have been seen in transport and distribution (up from 8% to 34%) and manufacturing (9% to 30%).

There have been significant rises in sectors hardest hit by lockdown: In retail, the percentage of small firms predicting growth has risen from 21% to 27%; in hospitality, growth forecasts rose from 11% to 16% in the three months since April.

The research suggests that smaller, more agile enterprises will be the fastest to adapt to the UK's emergence from lockdown. Small businesses that have been trading for less than five years (35%) and those that employ 10-49 employees (37%) are most likely to predict business growth for the next three months.

Gavin Wraith-Carter, managing director at Hitachi Capital Business Finance, described the findings as "remarkable for both the scale and the speed of the revival in small business confidence". He said: "Our new research … shows what an immediate and positive impact the easing of lockdown has had on the small business community. Whilst bigger businesses are having to adjust and adapt at a slower pace, small business confidence across the UK has bounced back."

However, results from the new Quarterly Recruitment Outlook published by the British Chambers of Commerce (BCC) indicate that almost a third of firms (29%) will reduce the size of their workforces in next three months.

The research, conducted in partnership with Total Jobs, has found that 59% will keep their headcount the same while just 12% are looking to expand their workforce.

The survey found that over the next three months:

  • 18% of micro firms (with fewer than 10 employees) expect their workforce to decrease;
  • 41% of small and medium firms (with 10 to 249 employees) expect their workforce to decrease;
  • 41% of large firms (with over 250 employees) expect their workforce to decrease.

However, as lockdown lifts, Totaljobs has seen a 30% month-on-month increase in the number of jobs being advertised on its website for June. There have been significant month-on-month increases in sectors benefiting from lockdown easing including retail (+51%), travel (+47%) and hospitality (+23%).

The British Chambers of Commerce and Total Jobs are calling on the government to reduce the overall cost of employment through a temporary cut in employer National Insurance contributions.

BCC co-executive director Hannah Essex said: "Many businesses are suffering from a historic cash crunch and reduced demand, meaning firms will still face tough decisions despite welcome interventions made in the Summer Statement. The government should consider additional support for employers before the Autumn Budget to reduce the overall cost of employment and prevent substantial redundancies."

Written by Rachel Miller.

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