Small businesses are reporting provisional signs of recovery and a renewed appetite for growth, it was announced today.
Comparative data recorded by the Federation of Small Businesses (FSB) has found that small firms’ financial situations and prospects are beginning to look up.
The 10-month study found that 23% of small businesses are now experiencing an increase in trade, compared with 16% in February, while just 25% cited the cost of accessing finance as a significant barrier to growth, down from 40% at the end of last year.
Meanwhile, more than two-thirds of small businesses are planning to grow in the next six months, through investment in either new products, staff or marketing, the FSB said.
John Wright, national chairman of the FSB, commented: “Small businesses are naturally flexible and innovative in recessions and these figures show that despite the very many negative forces on them, they are being cautiously optimistic and are looking to expand.
“Although we are certainly not out of the woods yet, many small firms are seeing increased footfall and finding it easier to obtain crucial finance than in the winter months, when things were at their worst so far.”
Wright also urged the government to recognise the pivotal role small businesses will play in the wider economic recovery by supporting apprenticeships, short-time working subsidies and easing the tax burden on small firms.
He said: “The government must look to small businesses to build the post recession economy and help them employ more people and ease the bureaucracy and tax burdens which many still face.”
© Crimson Business Ltd. 2009