SMEs more confident than larger organisations over budget cuts

Small and medium-sized enterprises (SMEs) see the imminent Comprehensive Spending Review as less of a threat than their larger counterparts.

This is according to the Economic Outlook Report by the Chartered Management Insitiute (CMI), which says that there is “huge anxiety” in the business world ahead of the Government’s cost-cutting announcement to be made on 20 October.

However, less than half (47%) of SME managers saw the forthcoming budget cuts as a threat to their organisation, compared to 60% of managers working at companies with more than 250 employees.

SME bosses were also more confident about their job security, with just 8% admitting to feeling insecure about their roles, in contrast to 42% of managers working at larger companies.

The CMI has called on the Government to increase the support on offer to managers by giving them greater control over how they choose to spend funding.

Ruth Spellman, chief executive of CMI, said: “Ultimately, the key to recovery is ensuring managers feel confident and optimistic about the future.

“Of course, managers and leaders must take some responsibility for developing the skills needed for success, but they are crying out for more support.”

The report also showed that less SMEs had pay and recruitment freezes in place than larger companies. However, businesses of all sizes expressed concern about how these cost-cutting measures would affect employee morale. A quarter of SME bosses said that they saw the potential for employee disputes as a significant concern.

The CMI surveyed 820 of its members across the UK for the report. This included managers with different levels of seniority.

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