SMEs urged to reduce costs but remain positive going into 2008

31/12/2007  09:02:50

Small and medium-sized enterprises (SMEs) have been urged to reduce unnecessary costs going into the New Year.

However, despite uncertainty surrounding interest rates and company legislation, just under half of SME company directors maintained the same outlook for 2008 as for 2007, research from Alliance & Leicester suggests.

But according to the lenders director of business banking, Steve Jennings, SMEs are collectively wasting around £500 million a year.

He said: "Small businesses should look for smart ways to reduce outgoings which will help support their growth plans for the year ahead."

"Something as simple as making sure that they are with the most competitive banking provider can make all the difference to a business finances."

According James Matthewson of the Institute of Direct Marketing, innovations in internet marketing technology are set to come into the mainstream in 2008 - providing a low-cost alternative for SMEs.

Meanwhile, Alliance & Leicesters research also indicated that more than a third of SMEs have a more positive outlook for 2008 than 2007.

This positive attitude is reflected in business attitude too, with 25 per cent of those polled planning to sell into new sectors and more than one fifth developing new product ranges for 2008.
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