Research released yesterday by the Department for Business, Innovation and Skills confirms that licensed hospitality businesses are driving growth in Britain and are more optimistic about future prospects than the wider business community.
The Small Business Survey 2014 shows that 32% of small and medium-sized employers expect to be employing more people in 12 months’ time, while ALMR research shows that 57% of pub and bar operators will be recruiting more staff this year than last.
The Survey also shows that “the businesses most likely to be young enterprises were those in food service and accommodation”, where 38% of firms are startups. This is reflected in CGA Peach research which finds hospitality startups significantly more optimistic about the future than their established competitors.
Bellwether for wider economy
Responding to the findings, ALMR CEO Kate Nicholls said:
“The report shows the extent to which licensed hospitality is a bellwether for the wider economy – we were hit harder than most by the recession but as growth returns and wages increase, confidence is rightly high. 70% of alcohol retailers are small businesses and with the number of SME suppliers to the sector growing, the rude health of small businesses can only be a good sign. ”
Less difficulty accessing lending
The research also highlights continued difficulty in accessing lending, with just 19% of SMEs even applying for finance, down from 24% in 2012, and nearly as many – 14% – not applying despite need. 44% of these businesses did not apply because they expected rejection. This contrasts with CGA Peach’s research, which found hospitality leaders increasingly confident of accessing lending with two thirds saying access improved in 2014.
Nicholls continued:
“While access to funding remains problematic for too many businesses, it is encouraging that hospitality firms are experiencing less trouble in this regard than many others. This indicates that our sector is increasingly seen as a good bet by banks and investors and we look forward to seeing their confidence repaid over the coming year.”
For more information click here