Partner Article

Business optimism plummets further

Small business owners have lost even more confidence in the government’s ability to help them, a survey has found.

The Optimism Index, by private equity firm Bowmark, found that seven in ten business owners see government intervention and legislation as an obstacle to growth, while nearly two thirds believe tax as a major obstacle.

Growth rates have slowed, with under 30% of respondents saying they had seen a rise in profits of 10% or more, compared to twice that in January. In fact, a quarter of respondents reported stagnant or falling profits.

However, despite the gloomy outlook, the Index reported rising interest in green technology. While almost three quarters of businesses have set up recycling initiatives, seven in ten said they will implement energy saving measures in the next six months.

Bowmark said the Index, which tracks how respondents feel about their businesses, has dropped nearly 10 points since the last survey six months ago, showing entrepreneurs are ‘distinctly gloomy’ about their business prospects.

Charles Ind, managing partner at Bowmark, said: “The outlook for the economy in the next six months is more uncertain than at any time in recent history. Entrepreneurial company directors have become increasingly apprehensive and cautious in their approach.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .