smaller companies tapping into new markets

The survey conducted by a large accountancy firm, said that, in general, the smaller the business, the more ambitious its goals are, with more than a quarter of organisations with a turnover of less than £1m wanting to double their size within three years.

This corresponds to figures for businesses with a turnover in excess of £100m, of which 33% want to double their size within three years.

The survey found that 96% of the businesses surveyed plan to grow in size, with nearly 75% of companies planning to increase their operations by more than 10%. Very few currently consider mergers, company flotations, acquisitions, or international expansion as ways to further develop their businesses. Most business leaders polled see organic growth via their existing customer base as the most likely way to develop their businesses.

The focus on non-organic growth depends on the size of the company. Overall, only 4% of respondents consider undertaking mergers and acquisitions as critical. However, mergers and acquisitions were significant to approximately 30% of businesses with a turnover of less than £1m, and nearly 60% of businesses with a turnover of between £10m and £30m, suggesting that acquisitions have not completely been dismissed.

Source: Copyright BusinessEurope.com 2004