Despite the slow growth in the UK economy, contractors such as those working through umbrella companies are doing surprisingly well, according to a new survey by the PCG.
The PCG polled 2,000 freelancers and discovered that in the last twelve months, 75% of them have been under contract for at least eleven of them. 84% of the survey’s respondents said they expected business opportunities to remain the same or improve in the coming months.
The MD of the PCG, John Brazier, said he was in no way surprised at the results because freelancers can help accelerate the economy while UK PlC is getting back on its feet.
He went on to say that although public sector opportunities are drying up, PCG members have proved that they are adaptable and secured private sector contracts. However, in order for the freelance community to deliver its full potential, the government must address the problem of red tape and reduce the amount of regulations.
Whilst life is good for the majority of freelancers and contractors, nearly 25% of SMEs saw their pre-tax profits drop by 50% in the last financial year.
The SME Distress Monitor, from Baker Tilly, also shows that nearly 10% of companies that filed accounts last year saw their sales decrease by more than 30%.
Sarah Batchelor, from Baker Tilly, said the research demonstrated that short-term debt pressures are having a really bad effect on SMEs. As cash-flow tightens, business owners must take action at the earliest possible opportunity to make the best of available financial options to stave off problems in the future.
The current economic outlook is far from stable and it is crucial that SMEs seek advice and implement safeguards if they are going to survive, she added.
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