SMEs still looking to employ and grow

Many SMEs will be looking to employ new staff over the next six months, despite big concerns regarding the business outlook and sluggish economic growth, a new survey by the London Entrepreneurial Exchange (LEE) has revealed.

In fact, seven out of 10 SMEs survey would be hiring in this period, as businesses look to buck economic pessimism.

The survey also revealed what SMEs felt they required to be able to grow. 12 month holidays on National Insurance (NI) contributions were cited by 55% of owners as the best way the government could help them, with 45% preferring a 2.5% drop in VAT, taking it down from 20% to 17.5%.

Business owners were also asked about the Euro and its contribution to poor growth in the UK. 60% of respondents do not believe or are unsure that the latest Euro bail-out is good for business, whilst 61% do not want a referendum on the UK’s membership of the much-aligned EU.

CEO of the LEE, Shalini Khemaka, was adamant that a temporary reduction in NI, especially that levied on young employees, would help stimulate growth, therefore benefitting the economy and society as a whole and driving prosperity.