Businesses struggling to keep afloat next year

Nearly a quarter (22 per cent) of businesses in the UK will be managing on less cash than last year, according to new research.

A fifth will also be monitoring their finances on a daily basis and making cuts when and where they are needed, Deloitte reports in its latest Entrepreneurship survey.

Despite the cautious approach, more than nine in ten (92 per cent) think that revenues will go up over the coming year, with more than half (56 per cent) expecting it to exceed more than ten per cent.

Just over a third (36 per cent) think increased revenue could go up to a maximum of ten per cent, while some eight per cent are expecting revenues to either decline or stay the same.

Tony Cohen, head of entrepreneurial business, said: "Owners of larger companies are predicting higher growth than smaller ones, indicating an ongoing lack of access to finance for earlier stage businesses.

"However, this year the vast majority of entrepreneurs expect positive growth over the next year suggesting that some of this cash will soon be invested in growth strategies."

Published on: December 14, 2010

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