SMEs struggle to agree on what the economic future holds
A new survey appears to suggest that opinions among SMEs are firmly divided on the general health of the UK economy, as well as where it is heading in the immediate future.
The Western Union Business Solutions International Trade Monitor (ITM) commissioned a survey which sought the views and opinions of over 660 UK SMEs.
The most intriguing statistic to emerge from the survey was the fact that just 54% of the SMEs questioned suggested that they have sufficient confidence in the current economy. In addition, 83% of the SMEs surveyed felt that the current situation in the euro-zone is only likely to remain stagnant or possibly even deteriorate further in the next 12 months.
More than anything else, the survey indicates that there is no common consensus among SMEs regarding what the economic future holds. The truth is that your view is probably coloured by how well your company is currently performing, with struggling companies understandably taking a rather downbeat view of their general surroundings.
Light at the end of the tunnel?
SMEs that may be struggling within the current climate received a significant boost today (10th April) when the first phase of the government’s new ‘business bank’ scheme was launched by Business Secretary Vince Cable.
A £300m injection will be used to fill certain gaps in the SME finance market, hopefully encouraging the growth of existing lenders that could potentially provide the funds to allow SMEs to contribute to the wider economy.
“Today’s £300 million boost shows we (the government) are serious about increasing competition and diversity in the business lending market. Establishing a lasting business bank institution is a long-term project, but getting this money reaching SMEs as soon as possible is the first step,” stated Vince Cable.
It will be hoped that this latest government initiative can lead to sustainable growth in the wider UK economy over the next decade.
A business insolvency specialist can assist business leaders and financial directors to deliver pro-active solutions for their struggling business.
This can include offering advice about necessary cost-cutting measures that could offer sustainable solutions to complex financial issues.