SME owners confident in face of rising interest rates
The five successive interest rate rises since last August have not dampened the confidence of Britain's small business owners, according to new figures.
Kensington's self-employed index actually shows an increase in the confidence of small business owners for the coming half year, with 67 per cent confident compared to 64 per cent in the last quarterly survey.
The majority (52 per cent) believe their turnover will increase in the coming 12 months, although there has been an decrease in the proportion looking to hire new staff dropping from 32 per cent to 26 per cent.
"No business is resistant to external influences and, when circumstances change, successful businesses are able to react to those circumstances and come back stronger than ever before," said Ian Giles from Kensington Mortgages.
"With rising rates, the cost of borrowing is increasing and so more business owners are turning to their own personal savings to invest in their future success. This can have a knock-on effect on their own finances and so there is a growing opportunity for intermediaries to help the self-employed adapt to the changing economic environment by providing sound financial advice," he added.
A recent dip in the CPI measure of inflation has suggested a further rate rise may be put on hold for now, although most analysts believe another quarter point increase is likely before the end of the year.
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