SMEs grow but profits go to big players

Although the UK`s small businesses are growing in numbers, overall profit share still belongs to big players, according to research by the Department of Trade and Industry`s (DTI`s) small business service (SBS).

The research claimed that 260 000 new firms were created in 2004, with 99% of those SMEs. However, in the IT sector fewer than 1 000 firms were set up,vnunet.com reports.

"One of the biggest challenges that small businesses face is trying to identify a market that the larger players will not exploit," says minister for small business at SBS, Alun Michael.

Small businesses in Uganda hardly survive and the blame is placed on money lenders who charge up to 30% interest, All Africa reports.

"The majority of SMEs which attract financing from street money lenders close within six months after inception, says the World bank`s country co-coordinator for SMEs, Sarah Kitakule.

"Ugandan small businesses don`t appreciate consultancy services. For instance, they would rather borrow money unwisely and make uncalled for expansion moves that would eventually lead to their demise, than consult a specialist in that area," she says.

Asian SMEs prefer local banks and also choose banks based on their specialist products and knowledge, not just the amount of credit they offer.

The latest results are from the Kadence Business Omnibus (KadBUS) survey of financial decision-makers in Asia Pacific.

KadBUS surveyed 300 SMEs in each of Malaysia, Singapore and Thailand and found that banks considered "most improved" in the last two years were OCBC in Singapore, Maybank in Malaysia, and Bangkok Bank in Thailand.

Nearly half (46%) of SMEs say that the skills they need to succeed are unavailable in their local market, according to research commissioned by business communications provider Inter-Tel Europe.

Compared to similar research conducted in 2004, this constitutes a 6% rise in the SME skills deficit, onrec.com reports.

"For many SMEs, growth will hinge on recruiting the best people available. But high-calibre candidates are becoming an increasingly rare commodity for SMEs as lucrative city packages tempt the prospective staff away," says Inter-Tel Europe MD Chris Harris.

HSBC Bank is launching a new Web site that has been developed following extensive customer feedback on what SMEs want from Internet sites.

The new Web site offers comprehensive business information resources as well as gateways to HSBC`s online banking services, finextra.com reports.

"Nine out of 10 firms have Internet access and nearly 80% cite obtaining information for their business as the most important reason," says head of business banking at HSBC Bank, Simon Wainwright.