Hospitality SMEs are more likely to feel confident about their prospects than other sectors, new research reveals.
The SME Growth Watch by Hampshire Trust Bank with the Centre for Economics and Business Research (CEBR), found 55% of hospitality SMEs feel confident about the future - 3% higher than the national average.
Hospitality SMEs highlighted economic uncertainty (40%) and competition in the market (36%) as the biggest barriers to growth, which could be deterring new firms from entering the sector.
The report found the hospitality sector has seen a 13% increase in the number of SMEs since 2010 – a lower rate of growth than the 17% increase across all sectors.
The research reveal technical and professional (39%), information and communication (33%) and business services (25%) as the top three highest growing sectors.
The sectors with a higher number of start-ups, those with 0-4 employees, were found to have a greater level of confidence when it came to the long-term economic prospects of their industry.
Stuart Hulme, Director of Savings at Hampshire Trust Bank, said: “Our SME Growth Watch report highlights the vital contribution of SMEs both within the hospitality sector and indeed across all sectors to the UK economy, and the rapid level of growth being demonstrated by some of the nation’s smallest businesses.
”These figures should be viewed as encouraging for the government, demonstrating the widespread resilience and ambition of UK SMEs.
