Survey finds rise of GDP brings confidence to small businesses

LONDON: A survey of 2000 small businesses undertaken a week after the 1% rise in GDP reveals that small businesses are now confident enough to start investing in their businesses – the survey was released byFreelancer.co.uk, the world’s largest outsourcing marketplace.

The survey found that 58% of small businesses are now willing to invest in their businesses, confident about the future and that investment will result in growth. Many are beginning to see sales pick up and a small return in consumer confidence.

Yet 61% of the businesses were refused a loan from a bank and will be using their own money to invest. 43% will use their savings, while 19% will borrow money from friends and family.

The survey found, however, that while businesses want to invest, they are wary about taking on new staff. 34% said they would now rather spend money on marketing, while 43% said they would now invest in improving their ability to trade online, saying that it was now easier to sell products over the internet.

The survey also found that 48% said they would be investing in hiring freelancers to undertake the work, saying that they only pay for services as they needed them

The survey was backed up by Freelancer.co.uk’s own growth figures, revealing that UK small businesses spending on freelancers has increased by 134% in the last few months.

“The Olympics may have given the UK economy a shot in the arm, but this survey shows that
small businesses believe that growth is now sustainable” said Matt Barrie, Freelancer.co.uk’s CEO.

“Small businesses are not only confident about the future, but they already seeing signs that consumers are confident too. More small businesses are hiring freelancers online, confident that their investment will pay off.”

“UK business are using sites like Freelancer.co.uk to carry out business across the world, undertaking data research, marketing, programming and rebranding,” he said.

Case studies:

Armstrong Security – Olympics security:

Gill Armstrong – a business that outsourced marketing needs and ended up providing 150 guards during the Olympics.

Gill was made redundant as a security officer and set up her own security businesses in Birmingham. Marketing her company digitally was crucial to its success, but local companies cost too much, so she hired a freelancer through Freelancer.com.  Such was the success that she had to supply 150 guards during the Olympics.

SEO was important to the success of her company, but as a start up she couldn’t afford the £5000 that a local company costed.

“Freelancer helped me achieve link building and digital marketing goals for Armstrong Security for less than a quarter of the price asked by local companies and professionals,” she said. “I wouldn’t have been able to afford to go digital without outsourcing to a freelancer.”

“With a very tight budget to market my services, Freelancer actually offered me the solution I as looking for…it also helped me learn most of the SEO from professionals I hired and now I have acquired very valuable SEO skills that I constantly use to stay ahead of competition”.

Gill made more than what she used to earn on her previous job in just 6 months. The Olympics led to increased business opportunities, with requests for the provision of security guards, stewards and bodyguards – Gill had to recruit 150 people to cope with demand during the period.

Mike Channing: Tuckbox

Mike was made redundant for the second time in this recession recently. (First by Zed Media where he worked on media planning and buying including the original Compare the Meerkat campaign) then he switched to BUPA.

He has subsequently decided to go self employed and start his own business and it will launch in the next week or so. Has a wife and three young kids, never had own business.

He used Freelancer for the design, ecommerce web development, photo editing and is going to run some research and other projects through the site. In his words he was “surprised” (read sceptical) when someone told him he could get the design and development done for under £1k via the site. He has now almost completed it for about £900. The site when it launches looks visually appealing and will be called British Tuckbox (selling British goods to expats with a yearning for Heinz, Cadbury’s etc).

Background

Webby award-winning Freelancer.co.uk is the largest outsourcing marketplace in the world. ThroughFreelancer.co.uk, businesses connect with independent service providers and freelancers. Freelancer.co.uk connects more than four million professionals from all over the world. Through our website, employers can hire freelancers to do work in areas such as software, writing, data entry and design right through to engineering and the sciences, sales & marketing and accounting & legal services. Jobs start at £20, and the average job is under £150, making Freelancer.co.uk extremely cost effective for small businesses and entrepreneurs, which often need a wide variety of jobs to be done, but cannot justify the expense of hiring full time.

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About Wanobe, the business knowledge network
Writer, journalist and broadcaster, sixty-something David likes nothing better than being with family and friends, eating out and drinking great wines, and scuba diving.

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