Business News Round Up (07/05/2021)
Nearly half of Scottish SMEs have struggled to find business advice
Nearly half of Scottish small to medium-sized enterprises (SMEs) have not had ‘adequate support’ when making difficult decisions throughout the past year, according to new research. A study conducted by chief executive coaching and peer advisory organisation Vistage revealed that 47% of SMEs struggled to find support. The company surveyed 150 business owners in Scotland last month, finding that one in four felt alienated due to the decisions they had to make during the pandemic. Small business owners showed dissatisfaction towards the UK and Scottish governments, with only 10% of respondents agreeing that they responded very well in terms of their support around Covid-19 and Brexit. The research found that SMEs turned to other sources for guidance throughout the pandemic, with 41% using online forums and government websites, 38% speaking to friends in other businesses, 19% using peer support groups and 18% using networking groups. Around 15% turned to third party advisors or consultants, with 7.5% speaking to non-executive or senior executive colleagues and 12% saying they have no-one to speak with.
https://www.insider.co.uk/news/nearly-half-scottish-smes-struggled-24053282
UK SMEs to invest an average of £150,000 as post lockdown optimism grows
The UK government’s plans to ease lockdown restrictions have seen a surge in optimism from SMEs, according to a new survey. The survey also highlights the fact that three quarters of business owners share a positive outlook and 74% believe that demand will be back to pre-pandemic levels by Christmas. SMEs across the country have begun outlining their plans to return to a more open economy with 6 in 10 seeing the acquisition of new customers as the main reason to be optimistic. As a result, the average SME intends to invest £150,000 in the coming months, with those in the construction and transport sectors planning to invest even more. Three-fifths are planning to dedicate a portion of investment to staff training and development or new hires. This means that nearly a third of the UK’s 6million SMEs are planning on increasing their workforce, a powerful boost for the nation’s economy.
Royal Bank of Scotland unveils near-record upturn in permanent placements during April
Permanent staff appointments across Scotland picked up considerably during April with the rate of increase the fastest since July 2014 and the second-strongest on record, according to the latest Royal Bank of Scotland Report on Jobs. Amid reports of surging demand for staff due to more favourable economic conditions, temp billings also rose at the start of the second quarter, the uptick “generally linked by recruiters to firmer demand for staff in April”, the report noted. Stronger demand for staff was also reflected in the number of vacancies although for the third month in a row, Scottish recruiters registered a decrease in the availability of permanent candidates during April – the latest fall in permanent staff supply being the most marked since March 2020. Respondents noted that jobseekers remained uncertain of switching roles due to the pandemic. The trend in Scotland mirrored that seen at UK level, which saw a steeper fall in permanent availability during April.
UK retail investors warm to domestic companies in March
UK retail investors are feeling more confident about the prospects for domestic companies amid a rapid vaccine roll-out and improving economic conditions, according to new data. In March, the country’s savers invested a net £472 m ($655 m) into funds in the UK All Companies sector, says the Investment Association (AI) – the first net inflows for six months. Savers also put a net £217 m into the UK Smaller Companies sector, more than the total net inflows from the previous three months. UK companies, broadly out of favour during 2020, have seen their fortunes change thanks to the successful deployment of Covid-19 vaccines and a rebound in economic activity, with the Bank of England predicting GDP growth of 7.5% in 2021. British stocks are also benefiting from reopening and inflation trades, given the large number of energy and mining companies represented in the FTSE 100.