Small Businesses are Cost-cutting but not chasing sales

The small-businesses in UK are only focused on cost-cutting than expanding their sales to secure their future.

Though the UK small-businesses are focused on cost-cutting, the coalition government is expecting that the private sector will take up the drop out left by big public sector.

According to a survey of 385 small and medium sized businesses, it was found that 43 percent of them were planning to cut costs rather than spending to expanding their sales. More than half of them said that continuous uncertainty in the business is the main back log for the growth. Around 42 percent of them expressed cash flow as their main concern.

Among the companies which are going after export orders, 72 percent are mostly increasing their sales by selling into the European Union. Around equal percentage of them said that their trading has been hit by currency fluctuations.

According to Phil Orford, Chief executive of the Forum of private Businesses, the problem in countries like Greece and Spain is having an impact on smaller exporters in Britain and currency fluctuations are additional difficulties.