SMEs fail to face future

Almost a third of fast-growing SMEs have no business plan, according to a survey by Kidsons.

And even among firms with plans, almost half failed to communicate details to staff.

Sectors most likely to operate business plans were IT and engineering, where 92% claimed to have one.

Graham Spooner, Kidsons’ head of corporate finance, said: ‘Failure to plan for change, in whatever form it arises, can have a disastrous effect on a business. With the coming economic downturn, it is only by anticipating change and identifying appropriate actions that SMEs will be able to continue to grow in what I expect will be an increasingly competitive environment.’

The UK’s SME sector also appeared to be ignoring threats posed by the millennium bug and European Monetary Union, the firm said.

In total, 57% of respondents – regardless of whether they were trading internationally or not – said EMU was a low threat to their business.

Year-2000 compliance scored even lower, suggesting government warnings are falling on deaf ears.

The survey also appeared to confirm the growth of single generation businesses with surprising numbers prepared to sell out rather than keep control in their own hands.

Related reading