The Analysis News & Opinions
Opinion
Firms want to become greener – and save cash
Almost two-thirds (64%) of SMEs want to improve their environmental sustainability, according to our Business Barometer. Nearly half (44%) say becoming more
environmentally sustainable is important to them, while a further fifth say doing so is very important. Moreover, 63% say they have already taken steps to make their firms greener in the past 12 months. Almost a quarter (24%) of SMEs have
made alterations to their premises to make them more energy-efficient in the past year, while a similar proportion (22%) have used suppliers that provide environmentally- friendly services or products. While the commitment from businesses to
make themselves more sustainable is good for the environment, nearly a quarter (23%) of firms admit they are primarily driven by the potential to make long-term cost savings. As public focus on transitioning to a
low-carbon economy rises – and given the government target of bringing greenhouse gas emissions to net zero by 2050 – over a fifth (22%) say they are motivated mainly by pressure from customers. More than a third (34%) of SMEs say they
plan to use cash reserves to become more sustainable. Meanwhile, 13% say they will rely on government grants. A tenth (11%) of SMEs said they had not made their firms more environmentally sustainable in the past year due to the cost implications. The impetus to introduce green measures
is not going anywhere. Becoming more sustainable is a gradual process that the UK business community must navigate together.
Keith Softly Head of asset finance, Lloyds Bank Global Transaction Banking
SME performance beats expectations
New research has found that the majority of businesses have performed better than expected in 2019. Despite ongoing political and economic
uncertainty, 55% of UK small and medium- sized (SME) firms said that their business had performed better in 2019 than 2018. This success was most prominent among
young business owners (aged 18 to 34), with nearly three-quarters (74%) saying their firm had performed better in 2019, compared to just 39% for those aged 55 and over. The research also found that businesses in
the North East fared the best in the last 12 months with 74% reporting improved performance, compared to 54% in the South East and just 45% in Yorkshire & Humberside. When asked what their business ambitions
were for 2020, delivering greater profit came out on top, with 36% of SME owners choosing this option. Subsequent priorities for next year included: lMaintain the same level of business as 2019: 32%.
l Renewed focus on brand marketing: 19%. l Increase staff: 19%. l Launch a new product: 15%. lMove into larger premises: 12%.
In order to achieve these ambitions, more
than half (54%) of business owners are planning to change their business strategy for 2020 compared to the previous year. This was most popular among younger
entrepreneurs, with eight in 10 looking to change their business strategy, compared to 57% for those aged 35 to 54 and just 36% for those business owners aged 55 and over. Chirag Shah, chief executive officer,
Nucleus Commercial Finance, which produced the report, said: “It is inspiring to see such ambition among SMEs as they start ramping up their efforts ready for the new year. Not only do business owners remain upbeat, but they are adapting to the challenging political and economic environment by evolving their approach to deliver their strategic goals. “Accessing finance can help business to
achieve these goals, whether it be to deliver greater profit, increase staff headcount, or launch new products. “As we step into 2020, we encourage
business leaders to be bold and invest in their futures, as now is the time to ensure they have what they need to maintain their competitive advantage and deliver growth next year.”
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www.CCRMagazine.com
January 2020
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