A majority companies believe that the latest changes to government policies will have no positive outcome on their business, leaving SMEs to manage for themselves, a recent survey reveals.
The Viking Small Business Barometer survey communicates with the same 1,000 managing directors and small business owners across 15 sectors in the UK every quarter. Last quarter’s study shows that nearly one in five small business owners admitted to having to sell or remortgage their home in order to gain enough funds to start-up or run a business.
Perhaps even more disturbing is the fact that one in ten respondents say they fear they will have to close down their business by the end of 2013.
The report includes findings from a variety of sectors including hospitality, retail, automotive and professional services. Male entrepreneurs aged between 45 and 54 had the strongest feelings about their lack of support from the government.
Businesses from the legal sector were the most despondent with, 75 per cent claiming that the government is doing nothing to improve the state of their business.
When factoring regional attitudes into the third of companies that remain doubtful, the 52 per cent which preside in London were the most dubious.
Regarding the support SMEs have been given from the government, 33 per cent of participants emphasised that the cap on fuel duty looks set to have the most positive outcome for their businesses. However, greater funding for Local Enterprise Partnerships in yearly investment allowance, were considered to have no impact at all.
Startup businesses up to three years old have been found to be the most buoyant, with 78 per cent planning on growing their business within the next 12 months, compared to the 39 per cent of longer established businesses.
Sean Baily from Viking said that “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.”
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