Partner Article

Small firms optimistic heading into 2013

Small firms are facing 2013 with optimism, suggest the Federation of Small Businesses.

The latest FSB Small Business Index fell by 1.1 points against Q3, but was still 18.8 higher than Q4 last year, as the economy entered a second wave of recession.

While growth is predicted to be slow, many firms are looking forward to investment in the new year, aiming to benefit from capital allowances announced in the Autumn Statement.

Cost pressures were still seen to be the main check on growth, particularly as energy prices are set to rise.

John Walker, National Chairman, Federation of Small Businesses, said: “This quarter’s report shows cautious optimism from the UK’s small firms. There’s no doubt that it is still a tough environment and the Autumn Statement highlighted that it’s going to be tougher for longer. However, small firms want to get on, grow their business and invest. We urged the Chancellor to put small firms at the heart of the Autumn Statement and many of his plans will help – especially raising the tax free investment limits.

“However, there is still more to do – especially around accessing finance. While more small firms have been accepted this quarter, it is clear from our research that others continue to struggle.

“Previous recessions have shown that demand for finance is at its highest during the recovery stage. The independent SME finance monitor concluded that businesses are unconfident that the banks will lend to them.

“The fact that fewer firms applied seems to corroborate this and further highlights the broken relationship between small firms and the banks. The small business bank needs to address this by opening up competition, especially if small firms are to bring forward investment plans.”

This was posted in Bdaily's Members' News section by Tom Keighley .