The construction industry is a traditional measure of economic growth. Generally, when it’s doing well, the economy is doing well. The latest figures for some parts of the construction sector make grim reading, however. This might lead you to think that SMEs must be in a pinch as well. But this isn’t true.

Some very encouraging recent figures are actually showing that UK SMEs are in a better place than they have been for quite some time. Let’s delve into the numbers and see what’s happening.

Big Firms Flounder, Small Firms Prosper

The collapse of Carrillion came as a shock to many – the government included. The collapse of Carillion had a big impact on the many state given contracts it was responsible for, but not on the bedrock of the construction SMEs. Indeed, SMEs in the construction sector have seen their order books fuller than they have been for a long time.

Small firms have long learned to adapt and grow, largely locked out as they are from the public sector and housebuilding arenas by so-called ‘Super Firms’. And only 10 percent of construction sector SMEs are actively considering entering this market. What they are focusing on is small, residential builds, and this is what has become the domain of SMEs in the construction sector.  

The Broader Picture

Outside of just construction SMEs, the outlook for UK small business is very encouraging. More new research has found that optimism amongst smaller business is at its highest level for 45 years. At the same time, small businesses reporting low sales have also plummeted to a historic low.

This is due to a combination of factors. Newly implemented tax laws are making their positive effects known, and stronger sales – teamed with gains in operating productivity – means UK SMEs are feeling more positive and agile than they have in recent years.

The report shows that small business capital outlay has risen three points – to 61 percent. Small businesses are assured enough in where they are and, very importantly, the future, to make investments. Indeed, 21 percent of SME owners are confident of higher sales volumes going forward, which is a rise of three points. 43 percent are planning on purchasing new equipment, and 27 percent are buying vehicles, both multi-point rises from the last index.

The main obstacle to many SMEs in taking advantage of this robust outlook is financing. The opportunities are there, and many SMEs simply need the capital to take advantage.  If this sounds like your business, contact us today – GIC Capital are experts in  experts in SME working capital and can help you get the finances in place your small business needs to succeed. 

Small and medium-sized businesses contribute a great deal to the UK economy. The sector is worth more than £200 billion a year, and this will rise to £240 billion by 2025. Additionally, UK SMEs are in a period of optimistic, extremely encouraging growth.

However, despite all of the positive forecasts and the strength of UK SMEs, funding from banks is still extremely hard to access. Many lenders are still in a cautionary mode and UK SMEs, who need business capital to fuel growth, are losing out.

Today, we’ll take a look at how SMEs can access funding from alternative streams to push forward their growth plans.

SMEs Need an Alternative

Prior to the great worldwide financial crash of 2008, SMEs had a very small number of institutions to approach for their lending needs. Small business lending was in the wheelhouse of a handful of institutions, and most, if not all, of these are still reticent to lend to smaller businesses. Tied up with the need for greater regulation and oversight, small business finance and credit has all but dried up. Banks are still wary of finding themselves short in the case of another catastrophic economic downturn.

Despite all of the encouraging signs for SMEs, 55 percent still find it impossible to find the funding they need. All this means that UK SMEs need to look elsewhere for the injections of funds required to make the most of a promising present and a bright future.

Other Finance Channels

One of the biggest booms to UK SMEs going forward is the opportunity to secure their futures with alternative lenders.

Rather than being a solution to turn to when traditional lenders say no, alternative finance can often a raft of benefits for small and medium sized business, no matter their sector. In 2016, for example, 33,000 SMEs used alternative finance channels to secure funding and the funds raised by these businesses grew from  £2.2 billion in  £3.3 billion in that period. This number is only going to continue to rise.

Alternative lending streams also offer other benefits, enabling SMEs to move quickly and remain agile in their sector. The speed of arranging alternative finance is usually beyond that provided by traditional lenders. A business can secure funding in 48 hours, making it possible to seize opportunities as they arise. At the same time, the simplicity and flexibility offered by alternative lending comes with business-friendly credit terms and early repayment options. For small businesses, this is a great way to find the perfect solution for finance needs.

One of the biggest benefits of alternative lending is the reduction of risk. An SME can spread their funding across different channels can avoid having all their eggs in one basket with a single lender.

If your SME is seeking alternative lending solutions, get in touch with us  today. Expert and committed to helping your business grow, GIC Capital will be with you every step of the way. 

When it comes to finding and retaining the best talent, SMEs can find it hard, with research suggesting four out of five SMEs find recruiting a uphill task. Bigger competitors often snap up the most talented graduates in the most in-demand fields, as they have the reach and funds to secure almost anyone they want.

If you add to that record high employment figures in UK, finding the best people for your smaller business can seem like a difficult task. But it’s important for SMEs to supplement their workforce with the best and the brightest – how else are you to grow and prosper?

With all this in mind, let’s look at why top talent is so important and how to get it.

Smaller Businesses See Bigger Results

In a huge company, no employee really has the opportunity to stand out or drastically affect their employer’s fortunes. Rogue traders might occasionally put a sizeable pockmark in a banking institution’s bottom line, but aside from those unwelcome examples, most employees in big firms are part of a machine. Not so for smaller businesses.

In a smaller concern, the right hire can have a dramatic impact. Because SMEs are more agile and carry a smaller team, recruiting top talent can provide tangible benefits. Innovations and superior performance by a new, talented employee can set the tone for the whole workforce. What’s more, talent begets talent. Being able to show prospective employees the high-level workforce you have is likely to impress and encourage more talent to your business.

Finding and Keeping Talent

To identify and recruit the best people in the field, your business has to apply itself to the task. This means working out what makes you unique and attractive to a potential employee and fostering a culture that makes the business an irresistible choice.

You need to identify what you do that makes people stay with your business. Small businesses can often offer more in terms of job progression and skills growth than bigger companies. Make it clear what this candidate will receive for coming onboard. Businesses that hire employees are taking them from somewhere else, so what makes you the better choice?

If you have HR on-site, then invest in recruitment marketing tools. This will enable you to target jobs to the right people in the right areas. If you don’t have dedicated HR, find a recruitment agency that understands the type of employee you want – have a firm idea of the skills and experience required, so they can run with this.

Finally, remember that recruitment affects the whole business. Every person involved in the sourcing and interviewing stage should have their voice heard. When deciding on a candidate, ask if this potential employee is not only skilled enough, but of the right character and disposition for your outlook.