According to the latest economic report from the Institute of Chartered Accountants in England and Wales, micro-businesses do not share the optimism of mid-sized businesses over growth prospects for the next two years.
The survey found that only 56 per cent of micro-businesses thought their turnover would increase in the next two years. With muted growth prospects and almost all businesses claiming to be intending to increase profitability in the next year, it seems inevitable that the preferred route will be cost-cutting. That, in turn, is likely to create downward pressure on supplier prices.
In addition, 60 per cent or more of micro- and small businesses consider the UK regulatory system to be ‘not business friendly’, with employment law, tax, health and safety regulations, business tax and planning law coming in for particular criticism.
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