Friday, March 2, 2012

Third of SME owners considered quitting

MORE than one in three owners of small businesses in Scotlandhave considered throwing in the towel, according to research whichsuggests they have had a tougher time than rivals south of theBorder.

In a survey by Royal Bank of Scotland and the Smarta website, 36%of respondents in Scotland said they had thought about quitting inthe early stages, compared with 29.9% across the UK.

However, owners in Scotland appear to have taken a more realisticview of their prospects than others.

While 40% of owners in the UK over-estimated their sales, only33% of owners in Scotland did so.

Some 53.3% of respondents in Scotland admitted that they hadunderestimated costs compared with 58% in the UK.

The survey found that business owners in Scotland were quickerthan others to try to harness the potential of the internet to boostsales.

Only 56% of small businesses in Scotland do not have a website,compared with 77% across the UK.

Many owners in the UK appeared to take a relaxed approach torunning their businesses.

Approximately 35% of businesses with a turnover of less thanpound(s)100,000 did not have a business plan, 63% had no formalaccountancy relationship, and 80% had no legal support.

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