Small firms struggling with overheads

by Sarah Ashcroft

Small enterprises across the UK are reporting a bigger volume orders and higher turnover, according to a new industry report.

The Forum of Private Business's Economy Watch research has found that nearly a third (30 per cent) of firms saw an increase in these areas between mid-October and late-November this year.

Just over half (16 per cent) of this figure reported a fall in turnover and orders.

The remaining 54 per cent said that business had remained steady over the period of the survey.

However, some 27 per cent of firms have seen a drop since October, indicating that the long-term trend has been less positive.

Phil McCabe, spokesperson for the organisation, attributed the decline to necessary overheads, with nearly half of firms saying that the cost of running their business had become more expensive.

He commented: "The ever-increasing costs of unavoidable overheads like gas, electricity, fuel and raw materials are taking their toll and eating into small companies' profitability."

Published on: December 10, 2010

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