Following the end of the recession many small businesses are still reporting to have seen little or no increase in business whatsoever.
A survey by business insurance comparison website, Constructaquote.com, revealed that a whopping 78% of small business owners claimed not to have seen any increase in business. More significantly, 29% of those small businesses surveyed claimed that this was due to a lack of support from the banks. A further 20% reported that a drop in consumer confidence was another significant factor in the stagnation of their business.
Lyndon Wood, the Chief Executive Officer at Constructaquote.com, commented:
“This survey clearly indicates that the British banks are still letting down small business owners, despite pressure from the Government and small business groups.
Clearly more needs to be done to help small businesses flourish and succeed, otherwise there is a very real fear that our already fragile recovery is likely to crumble.”
When asked if they were confident that their business is likely to grow over the next 12 — 18 months, 41% of respondents were unsure and 22% were not optimistic about the future.
Mr Wood went on to say:
“This survey is a sure indicator that confidence amongst small business owners is still at a low and the coalition Government is faced with a major task to improve public opinion over the next year or so.”
It is thought that with the Government restricting public spending, redundancies and an impending VAT rise from January next year, both consumer and business confidence is likely to drop further still.