Small firms see better times ahead
SMALL business confidence has fallen in the last three months but many are looking to grow in the next year, according to a new survey.
The confidence index compiled by the Federation of Small Businesses fell 5.8 points to -4.5 in the third quarter but remains higher than at the end of last year.
The FSB’s survey found half of those who took part looking to grow although access to finance remains a concern with refusals increasing from 40.6% to 42.4%.
FSB chairman John Walker said: “It isn’t surprising that confidence fell back into negative territory as the recession entered its third quarter as growth flat-lines.
“The message is clear though – businesses want to grow and invest but they need a helping hand to do so. It is frustrating that bank finance is still difficult to get. No matter what is said about demand, more than 40% of applicants have been refused in each quarter this year. This has to change if growth aspirations are to be met.
“I’m pleased that the Chancellor and Business Secretary have committed to looking at a small business bank. While it is urgent to address access to finance, it is critical to get the right structure in order for it to work properly. It must be for the long-term and not just a short-term measure for the recession.”
The survey found business services firms and small manufacturers were performing well but those relying on discretionary spending were more vulnerable.
Overall, a majority of firms reported a fall in revenues for a 10th consecutive quarter.
Meanwhile a separate study commissioned by recruiter Odgers Interim SME – the specialist in interim management appointments – has shown that 35% of SME businesses in the North West are looking to grow their management teams over the next 12 months.
More than 400 SME companies in the region from various key industries were approached, including those operating in the manufacturing, food and drink, technology and business support service sectors.
Alex Lenihan – consultant and head of Odgers Interim SME in the North West – said: “This survey has been a useful tool in understanding both the recruitment and interim trends within the SME space.
“We appreciate the outlook is still challenging but SMEs are – and will continue to be – vital to the North West economy so signs such as these are very welcome.”
