Small firms consider double dip recession ‘more likely’

Survey reveals business views on spending review

Over half of small and medium sized enterprises are less positive about the economic climate, with 56% believing a double dip recession is now more likely, after the government unveiled its Comprehensive Spending Review (CSR) yesterday.

Research of 500 small business owners found that half consider the public spending cuts to be potentially damaging to their company. However 46% said that chancellor George Osborne had no real alternative, while 44% said they welcomed the cuts, believing them long overdue.

Furthermore, almost half of those surveyed agreed that public sector workers had been pampered and protected for too long, with almost a quarter saying they think the public sector should be slimmed down even further.

Dave Sumner Smith, programme director of The SME Hub, who conducted the research, said: “SMEs account for 99.9% of British businesses, 59.8% of private sector employment and 49% of private sector turnover.

“SMEs weren’t mentioned in the review, but the impact of the CSR on this vital group will be far reaching and a crucial facilitator of economic recovery.”

According to the survey, small firms weren’t convinced by the announced initiative to invest in adult apprenticeships. Over half (56%) said it wasn’t something that would benefit their business, while only 7% agreed they would be likely to take advantage of the scheme.

© Crimson Business Ltd. 2010

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