Small businesses across the UK are looking to expand in terms of commercial property space and headcount in 2013, according to a new business report by workplace provider Regus.
In the new biannual report, it has emerged that over a quarter of small firms in the UK are going to increase their headcount by at least five per cent by the end of the year, whilst a further 20 per cent want to see an increase of between two and five per cent. Specifically, over half of the companies sampled revealed that the divisions that they wanted to develop were both their marketing and sales staff.
In turn, as companies hope to grow further, more and more firms are looking for new properties and offices. Large cities such as London and Manchester have seen a recent rapid increase in the demand for office space, and therefore rental rates have sharply risen in such competitive markets.
According to Small Business, Regus UK managing director Steve Purdy said: “Managing this stage of recovery is crucial, as it carries the huge risk that firms will overextend themselves. Indeed one of the major causes of financial distress in previous downturns was property, with 45 per cent of firms having their fingers burnt by expensive and lengthy leases.
“This time round, companies are far better equipped due to the availability and acceptance in the business world of flexible working, especially in terms of physical workspace.”
Mr Purdy went on to argue that some companies may even expand by not having to be tied to permanent office space. Remote working has allowed firms to keep their overheads low whilst also allowing their business to grow organically.
The Regus Business Confidence Index was based on results from the past six months.