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Continued strengthening of Swedish small businesses



  

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Monday, 02 May 2011
The performances of Swedish small businesses continue to strengthen in 2011 according to a new study.
The bank Swedbank’s small Business Barometer (for companies with 1-49 employees), published on Monday show this phenomenon. The trend Indicator, which is a summary of the balances orders, sales and employment, rose to 96 from 81 last fall, but is still not back to the levels prevailing before the financial crisis of 2008.

"The economic upturn is driven by an increase in orders which are increasingly generating new employment, "said Jorgen Kennemar, who is responsible for Small Business Survey at Swedbank, in a statement.

Small business entrepreneurs foresee continued economic improvement in the next twelve months where the overall economic indicator rises to 122. Half of companies say that new orders will increase over the next twelve months and every three companies are planning new recruitment.
The labour shortage is perceived as a major obstacle to growth in all sectors. Every three small businesses have been forced to turn down orders in the last year compared with just over one in four companies last fall.

"The profitability of small businesses has improved in 44 percent of companies in the past year and half think it will continue to strengthen in the coming year. Higher interest rates, rising commodity costs and wage costs are factors that can endanger their viability, "said Jorgen Kennemar.

A growing competition both within and outside the country is likely an important explanation for the competitiveness issues regarded as the greatest challenge of every three businesses over the next 3-5 years. Profitability and labour supply are other challenges that have a prominent role.

The high commodity prices are an economic risk that has received a higher profile in 2011, although the impact varies between sectors and companies. More than half of the country's small manufacturing and commodity intermediary firms are adversely affected by higher commodity prices. In service firms, the percentage is naturally less than 20 percent.
By Scancomark.se Team

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