SME Employment Drive in 2011?
Research from serviced office space provider Regus has revealed that SMEΓÇÖs across the UK are more likely to hire new staff in 2011 than their larger counterparts ΓÇô highlighting the key role that these businesses can play in the UKΓÇÖs long-term economic recovery.
According to the research from Regus, who are the worldΓÇÖs largest provider of serviced office space, some 38% of entrepreneurs and SME owners here in the UK intend to hire new staff in the opening six months of 2011, while only 34% of ΓÇ£all businessesΓÇ¥ have stated a desire to follow suit.
ΓÇ£Entrepreneurial businesses show strong signs that the sector is getting ready to grasp the full momentum of the recovery by investing in staff rather than cutting personnel.ΓÇ¥ explained Celia Donne, Regional Director for the serviced office provider.
Stating that SMEs account for 60% of private employment and 49% of private sector turnover, the potential impact of such an increase in employment could be far reaching ΓÇô despite this however SME owners remain concerned that their needs are overlooked by government and that progress may be hindered.
ΓÇ£Entrepreneurial success is an indicator for innovation and future wealth generation. Given its key role, the concerns and obstacles faced by SMEs are likely to have significant repercussions on the economy as a whole.ΓÇ¥ continued Celia Donne.
ΓÇ£In the UK in particular, although at the end of October ┬ú150m over the next four years were put aside for SMEs, small businesses remain very concerned about key issues such as red tape which will need to be addressed for the health of the sector.ΓÇ¥
While the 2008 recession has left many unwanted legacies for UK businesses to deal with, the Regus research suggests that the trend of off-loading staff has shifted – suggesting instead that businesses have set-about injecting flexibility into their business model by off-loading the costs of things such as fixed office space in order to lower overheads ΓÇô a process which has allowed them to retain key staff and ensure the skill-set remains in place to help them both through and beyond the downturn.