Cash the priority for business speculation

MORE than 90 per cent of Yorkshire's entrepreneurial businesses expect to grow their revenues over the next year, according to the results of the annual Entrepreneurship UK report by Deloitte, the business advisory firm.

Raising and generating cash remains a priority for entrepreneurs.

Forty-six per cent of respondents revealed they were actively stockpiling and retaining cash within their business. A fifth (22 per cent) have less cash than at the same time last year, but said they had enough to get by, while a further fifth are monitoring their cash position daily.

Simon Manning, head of private companies in the Leeds office of Deloitte, said: "Last year, cost reduction was seen as the quickest and simplest way to bolster the balance sheet. It was a priority for entrepreneurs, meaning the expansion of their business, the driver of revenue growth – took a back seat.

"However, this year the vast majority of entrepreneurs expect positive growth over the next year suggesting that some of this cash will soon be invested in growth strategies."

The UK, Western Europe and North America remain the preferred markets for growth for 84 per cent of entrepreneurs. Just 1.5 per cent regard China as offering prospects for growing their business.

Mr Manning added: "Foreign expansion into potentially untapped markets, especially for those sectors more naturally suited to global expansion such as telecommunications and technology, remains down the list of short-term priorities.

"Entrepreneurs are maintaining a more cautious stance, avoiding any potentially costly drains on company resources in turbulent markets."

The results are based on a survey of around 350 entrepreneurs from around the UK.