New research from Hitachi Capital Business Finance shows that there is a decline in growth predictions for the UK hospitality sector for 2020.
The hospitality sector is one of only two sectors where growth outlook has declined in the New Year – in the last six months alone, growth outlook has dropped from 37% to 33%
Conversely, those predicting a decline has dropped for three consecutive quarters, going from 21% in Q3 to 10% this February.
Those who are struggling to survive has also dropped for three consecutive quarters; with the biggest drop seen between July and October of last year from 11% to 5%.
As of January, the number of small firms in the hospitality and leisure sector struggling to survive now stands at 3%.
The research was conducted by YouGov among a representative sample of 1,196 small business decision makes spanning industry sectors.
Wraith-Carter, Managing Director at Hitachi Capital Business Finance, said: “Last year small businesses had to adapt to a period of protracted Brexit uncertainty and the economic ripple it delivered to sectors across the UK. We start 2020 with far greater certainty and our research suggests small businesses have switched from staying afloat through cost-cutting to a new era of planning for sales growth, investing in people and product diversification to boost bottom-line growth. While 10% of business leaders are investing in training, the remaining 90% should be giving this serious thought, and what options that are available to businesses.
“Our research also suggests that more small business owners recognise the need to adopt flexibility in their budgeting, whilst safeguarding their financial strength by building up their financial reserves. These factors point towards 2020 being a year when more small businesses will be looking for finance to help to realise their growth ambitions.”