FIRMS are finding it hard to grow in the economic climate. According to a survey of 16,000 independent businesses, only seven per cent achieved reasonable growth last year, a partner with Kent-based accounting firm BDO Stoy Hayward told business chiefs. David Miles said at a growth seminar in The Thistle Hotel, Brands Hatch, that low inflation, skill shortages, stiff competition and trade protection policies in the United States, were some of the problems hitting growth.

"Price inflation has gone for ever," he said. The public was benefiting but it was hard for firms. "It's tough just about everywhere," he said. Local firms could help themselves by planning a strategy - too few actually did this, Mr Miles said.

"It's not just about knowing your strategy, it's about checking and re-checking what you are doing," he said. Many firms started successfully but did not adapt to changing tastes and market conditions. And he warned: "Hypergrowth companies often go bust - they don't understand the importance of monitoring cash-flow. They think it's all about growth and profits. It's not, it's about cash."

He urged firms to budget for a 20 per cent cash shortfall. "See if you can survive - if you can't, you're not being aggressive enough in your budgeting and planning." Seminar hosts included BDO Stoy Hayward, Fortis Bank and Tunbridge Wells law firm Cripps Harries Hall.