The Guardian is reporting that business growth is expected to be slow, due to anxiety over the Eurozone and general election anxiety. What does this mean for small and medium sized businesses?
If economic growth remains slow on the larger sized of business activity, this means it is unlikely that we will see an increase in spend amongst consumers as wages will remain static. This will also affect small and medium sized business who have big business as their customers. New customers may be wary of spending as much as they can so do not be surprised if you are faced with more bartering and discount chasing from your customers. On the plus side, those with low cost services or money saving services can see an opportunity in saving larger company’s money. Big scale investment such as sponsorship will be hard to come by until there are some clear answers on Greece, the general election and the Eurozone situation but thankfully there are policies in place for small and medium sized business for those who are feeling the slowdown in business spending.