A source from the Institute of Chartered Accountants in England and Wales (ICAEW) believes that cash rich, well-run businesses will be in a strong position to gain market share and make acquisitions over the coming months.

According to the ICAEW the current economic climate has weakened the competition for many small businesses.

Clive Lewis, head of small to medium enterprise issues at the institute, says a “surprising number” of businesses have reported one positive outcome of the credit crunch is the effect on its rivals.

“A number of them said that they were looking to make acquisitions because of weakened competitors to strengthen their position in the market place and to grow their business,” he states.

Lewis says that small firms should be especially “focused” on their finances, and ensure that they keep within the terms and conditions of any overdraft or loan.

Lewis added that cash-flow must remain to be a daily focus: “without fail”.

The UK Enterprise Survey Report 2008 from ICAEW found that over 80 percent of businesses are still planning growth in turnover across the next two years, despite the global credit crisis.

Our Random Articles

• Small businesses plan staff cuts in early 2012
• Unemployment rise – what does this mean for small businesses?
• The Mary Portas Review
• Experts Warn Small Firms of the Need to be More Aware of IT Security Risks
• SMEs Unprepared for New Pension Reforms

More Links