· 40 per cent of small businesses believe Government policies have no positive effect on business
· 1 in 10 businesses to close by end of 2013
· 52 per cent of London small businesses left unconvinced by Government polices
Independent businesses across the UK fear their concerns for help with keeping afloat have fallen on deaf ears, as two in five (40%) companies believe that recent changes to Government policies will have no positive effect on their business – leaving SMEs to go it alone. More worrying is the fact that one in ten respondents believe they will have to close by the end of 2013.
According to the quarterly Small Business Barometer report published by Viking – a leading supplier to small and medium sized businesses, male business owners aged 45-54 felt most strongly about their lack of help from the government. The report reveals findings from a cross-section of sectors including retail, hospitality, automotive and professional services. Businesses from the legal sector proved to be the most despondent with 75 per cent admitting that the recent changes will do nothing to help the state of their business.
Furthermore, regional attitudes reflect the overall national figure of a third of businesses remaining unconvinced about the Government policies, with 52 per cent of those in London being the most doubtful.
Regarding support received from the government, 33 per cent of participants highlighted that the cap on fuel duty looks set to have the most encouraging outcome for their business, while greater funding for Local Enterprise Partnerships and an increase in annual investment allowance were deemed to have no impact at all (10 per cent combined).
Start-up businesses (up to three years old) are more optimistic with 78 per cent saying that they are planning on expanding their business within the next 12 months, compared to only 39 per cent of longer established businesses.
Sean Bailey at Viking, said: “It’s a tough time for SMEs at the moment and having a substantial support network is essential in unstable economic conditions. Although support comes in many different forms, the issue here is regarding financial support from Government policies and evidently this is where SMEs feel let down. The report reflects the voice of the SME’s, so we hope that we will see the beginnings of more an optimistic outlook in the next quarter. ”
The Viking Small Business Barometer, is a quarterly tracker survey, which speaks to the same 1000 small business owners and Managing Directors across 15 sectors in the UK every quarter, in order to understand the thoughts and outlook of the country’s small businesses, which employ 14.1 million in this country and are seen as the key to economic recovery.
Last quarter’s research revealed that nearly one in five small business owners admitted to having to sell or remortgage their home in order to gain enough capital to start-up or run a business, this figure has halved (nine per cent) in this quarter.
|Region||Government policies will have no positive effect on my business – Regional %|
|Yorkshire & Humber||
For more information about the findings of the Viking report, visit the following link: http://www.vikingnews.co.uk/sme-barometer/