Partner Article

Small businesses cautious about growth prospects

Small businesses are cautious about their prospects following the 2011 Budget, according to a survey.

The research, which was conducted by Safestore reveled that 55 percent of small business decision makers are expecting their business to ‘stay about the same size’.

Out of the 500 small business senior decision makers only 25 per cent predicted their businesses would grow in the next 12 months.

Peter Gowers, CEO of Safestore commented: “Small businesses clearly remain cautious about trading prospects.

“They want to grow and are doing what they can to keep on top of costs, for example by moving into flexible self storage facilities rather than tying themselves into rigid property leases.

“What they need from the government is more help to reduce the burden that lies beyond their control - taxes, rates and regulation.”

The research, which assessed 500 small business senior decision makers’ perceptions of the 2011 Budget and the implications for small business, also shows that more needs to be done to help them cut costs.

54 percent of small businesses surveyed said the measures announced by Chancellor George Osborne will make no difference to their growth prospects and 26 percent actually think it make things harder for them to grow.

When asked to consider the budgetary measures they thought would have the most positive effect on their business, 22 percent said that no new regulation for firms with less than ten employees for three years was the most advantageous.

This was followed by business rate relief holiday being extended for a year (12 percent) and fuel duty to be cut by one pence (12 percent).

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