The growth ambitions of small and medium enterprises (SMEs) throughout the U.K. are left vulnerable, due to their worries surrounding the shortage of ‘suitable’ property. In addition to the cost and process of moving;
- 35 per cent are worried about finances
- 29 per cent raise the issue of the real estate stock in the area
- 27 per cent are put off the idea due to the potential disruption of the business
- 19 per cent are nervous about the process
So why the move?
An increase in business means the necessity for the company to move or expand, in order to facilitate more employees, more storage and more equipment.
More than half of SMEs in the U.K. state the need for a new or extended property, which totals to around 3.4 million businesses. SMEs are encouraged by Andrew Charnley (Head of Corporate Relationships at Together) to have a precise plan before the move, this includes finances, the use of lenders and lawyers, in order to ease the process. Although, he does advise that these property opportunities are to be taken quickly.
Furthermore, this creates an opportunity for lawyers and additional advisers to help SMEs become confident enough to achieve their growth plans, through providing support and guidance.
One of the main factors SMEs need to take into consideration are exactly how their company is going to achieve their growth. Should the business be relocated, should additional property be purchased, should the current property be extended, or is there need for construction? These are all questions that can be advised by legal support.
As of February 2020, there are 30 per cent of firms that are looking to relocate, 16 per cent are hoping to extend their current facilities and 12 per cent are looking at constructing a new property. London and the North East obtain the highest percentage of businesses who are focusing on growth (both over 70 per cent). Whilst Wales obtains 64 per cent, and the North West 63 per cent.
Charnley reveals that this increase in numbers states that more SMEs are becoming confident enough to invest into their growth plans, by moving or extending where they are; ‘it is great to see that SMEs are genuinely on the move now that business confidence is returning.’