Business owners still cautious says R3

MORE than half of all businesses in the North disagree with George Osborne’s statement that the economy has moved “from rescue to recovery”.

That’s according to the latest Business Distress Index from R3, the insolvency trade body.
 
The data shows that 56% disagree that the economy is now in recovery mode while just 33% agree.

R3’s North West regional chair Jeremy Oddie, who is also a head of recoveries at accountants Mitchell Charlesworth, said: “Despite the positive economic news, many businesses – small businesses in particular – still feel they have some way to go.
 
“Now is not the time for complacency. One of the most dangerous times for a business is immediately after a recession, when a lack of investment as a result of cutbacks and the stress of servicing growing demand take their toll. While it might look like economic recovery is taking place, it may not feel that way for businesses on the frontline just yet.”
 
Despite businesses’ caution, over two-thirds of respondents said their firms (69%) showed no signs of distress – up from 67% in March this year and 38% in June 2012. Some 60% of businesses reported at least one sign of growth – investing in new equipment, business expansion, increased sales, increased market share, increased profits – compared to 59% in March this year and 80% in June 2012.

The index is based on interviews with 500 owners of small, medium and large businesses.