Scoot Blog

According to the manufacturer’s organisation the EEF, the availability of finance for small businesses is improving, but at an increasingly prohibitive cost. Touch Local carried out a poll amongst a sample of UK SMEs registered on our directory to find out if small business owners had experienced greater costs when seeking finance.

The Survey

As a small business owner, have you experienced greater costs when seeking finance?

The Results

Yes: 266 (49%)

No: 155 (28%)

Don’t Know: 123 (23%)

Total responses: 544

Summary

Just under half of small business respondents (49%) have experienced greater cost when seeking finance this quarter, with many unable to take our loans as a result. Others felt that bank lending had not improved at all, and were subsequently forced to look elsewhere for financial assistance. Over a quarter of respondents (28%) stated they were not experiencing higher costs when seeking finance. However, it is clear from the comments that several small business owners were looking for help from family and friends, and not professional financiers. 23% of respondents did not know their situation with regards to increasing costs, with the majority of these businesses requiring no financial assistance this quarter.

Some of the comments from the respondents:

I have not seen any improvement in the finance available to small business for us or my fellow SME businesses.

I have found big banks are willing to lend but at ridiculous cost

I am in the fortunate position of not needing to seek finance so this issue has not affected me.

High Street banks are simply not lending, in my experience. One is, therefore, at the mercy of more independent financiers, who charge exorbitant rates of interest. The banks need to make things easier for small business. If there is a good business plan, or an existing business that is clearly working, they should be open to lending. They are not.

I managed to borrow from family instead.

Being self employed, Banks and Lenders do make it difficult to get loans when in actual fact most self employed people are more secure than those employees working for a company.

We’ve had difficulty getting finance but when we have, it’s been at a higher rate of interest.

Do you have a question for UK businesses? Email kris.lea@touchlocal.com to submit your suggestion.

This week the Prime Minister blasted the civil service for loading costs and red tape regulations onto businesses. Touch Local carried out a poll amongst a sample of UK SMEs registered on our directory to find out if small business owners believed that red tape regulations are holding back growth for SME’s.

The Survey

As a small business owner, do you believe red tape regulations are holding back growth for SME’s?

The Results

Yes: 646 (80%)

No: 99 (12%)

Don’t Know: 68 (8%)

Total responses: 811

Summary

More than three quarters of small business respondents (80%) agree with the Prime Minister’s belief that businesses suffering from red tape regulations ‘frankly cannot take it any more’. The majority of these believe that the administrative cost and time spent on red tape is stifling the growth of their business, and fear that under the new Government things will not improve. Only 12% of small business owners do not believe that red tape is affecting the growth of SME’s. Of these, many note other legislations that are having a detrimental effect on small businesses, whilst others indicate that some industries such as banking rely heavily on red tape. 8% of respondents did not know whether red tape is affecting small businesses.

Some of the comments from the respondents:

Certain business sectors such as banking need much more red tape – without sufficient regulation, business will be forced to develop unsustainably and eventually crash.

You deal with more red tape than doing business.

The banks are holding us back by not spending, not the red tape.

I’m too scared to employ anyone – particularly women who may get pregnant. As a woman myself I am horrified by my response, but paying maternity leave could bankrupt my company. And employment law is such that it is practically impossible to get rid of someone who isn’t good enough. That too could destroy my company and I’m not prepared to risk something that has taken me years to build.

Whilst I am unaffected by red tape, I do know of many SME’s who are affected.

It’s not been a problem for me personally so far, but I know it is for many small businesses.

I have stayed self-employed not taken anyone on as there is too much red tape.

All the red tape and lack of assistance is stifling small businesses and growth in this country.

SME’s rarely have the manpower to trawl through legislation

I am a small business owner and I sub-contract all my work. If there was less red tape I would consider employing people directly.

Do you have a question for UK businesses? Email kris.lea@touchlocal.com to submit your suggestion.

This month the Government is publishing its second budget. Touch Local carried out a poll amongst a sample of UK SMEs registered on our directory to find out if small business owners are confident that the Chancellor will set up plans to help the economy grow.

The Survey

As a small business owner do you think the forthcoming budget will set up plans to help the economy grow?

The Results

Yes: 217 (24%)

No: 475 (53%)

Don’t Know: 212 (23%)

Total responses: 904

Summary

More than half of small business respondents (53%) are not confident in the upcoming budget announcement and the Government’s ability to drive the economy forward. Many of these business owners believe that the increase in VAT and the proposed Interest rate rise will harm the spending power of the country and leave people with less money to spend and little room in which to manoeuvre. Others believe that the Government have largely disregarded small businesses, and are not confident that the new budget will propose anything to the contrary. Less than a quarter of respondents (24%) are optimistic in the upcoming budget, with the view that the new Government is making the right strides to reinvigorate the economy. 23% of respondents were unsure whether the forthcoming budget will set up plans to help the economy grow.

Some of the comments from the respondents:

It’s difficult to see such a cut-back focus helping growth in the economy and therefore I’m not optimistic of good news in the budget for small businesses.

With so many cut backs, it is difficult to make the economy grow!

The constant change of tack breeds uncertainty. You are doing nothing to promote growth, investment, confidence and as a government lack the vision and resource to get us out of this.

Not helping small business at all!

You have to believe

Lower taxation and government expenditure

The tax on banks is a joke why not tax them the same amount as they pay in bonuses. Interest rates are at a record low try telling the banks this when trying to get a loan

The rate of interest should remain low and the Government should lobby the Bank of England to ensure that it does. The current factors that are causing the inflation rate to rise are individual items and not a trend.

I believe Osborne knows the importance of small business and the importance of getting rid of red tape and get banks lending. However what he does still depends on big business, the markets and the ‘ruling classes’. The danger is he will make great headline attracting statements, yet noting will come of them. If that happens then the country is sunk.

Do you have a question for UK businesses? Email kris.lea@touchlocal.com to submit your suggestion.

London, February 22th, 2011: Yesterday a member of the Bank of England’s interest rate-setting committee called for a raise in interest rates to help get inflation back to its 2% target. Touch Local carried out a poll amongst a sample of UK SMEs registered on our directory to find out if small business owners shared the notion that interest rates should rise to help curb inflation?

The Survey

As a small business owner, do you think interest rates should rise to help curb inflation?

The Results

Yes: 281 (28%)
No: 642 (63%)
Don’t Know: 98 (9%)

Total responses: 1021

The businesses who took the survey are all listed on http://touchlocal.com

Summary
Two-thirds of small business respondents (63%) opposed the idea of increasing interest rates, with many believing that the raise would result in a far greater cost to their business than any change in inflation. Just under a third of respondents (28%) would welcome a rise in interest rates if it led to greater control over inflation and the UK economy as a whole. A minority of business owners (9%) were unsure if they would support the change, believing that it could be imposed in the future, but no immediate adjustment should be made.

Some of the comments from the respondents:
• No rise at the moment. Inflation is the lesser evil in economics at the moment. Rise in interest rates will mean less money in the economy as people have higher mortgages etc.
• Leave well alone for the moment
• I think there are better ways to reduce inflation, like reducing fuel costs. This Government seems reluctant to do this.
• It is more important at this stage to think of the economy as a whole than to think of small businesses.
• A lot of our visitors to our caravan park are elderly and living of their savings. An interest rate increase would benefit them and subsequently us as our bookings could increase.
• The interest rates must rise!
• Raising interest rates won’t help small businesses,
• It is a way that we can help our country to recover.
• Interest rate rise will further dampen the already weak economy.
• Stability and predictability are key to recovery. Any change creates uncertainty.
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Do you have a question for UK businesses? Email kris.lea@touchlocal.com to submit your suggestion.

Prime Minister David Cameron recently re-launched his vision of a ‘Big Society’. Touch Local carried out a poll amongst a sample of UK SMEs registered on our directory to find out if small business owners understood the concept of Cameron’s ‘Big Society’.

The Survey

David Cameron has a vision of a ‘Big Society’ – do you know what ‘Big Society’ is?

The Results

Yes: 451 (43%)
No: 591 (57%)

Total responses: 1042

Summary

Despite many business respondents (43%) claiming to understand Cameron’s concept of ‘Big Society’, many believed it to be ambiguous and confusing. This notion is supported through some comments which found that many business owners’ understanding of the concept was erroneous.

The majority (57%) who took the survey did not know the Prime Minister’s key mission. These results suggest that the Government need to communicate better with SMEs over key issues if they want to obtain their understanding and buy-in.

Some of the comments from the respondents:

What is the ‘Big Society’ all about and how does it affect me?

Big Society….? No idea!

The Big Society means getting people to work for no pay.

Big Society is merely a front for government cuts and for creating a market for services.

I know what the “Big Society” is, or at least what it should be, but rarely hear it being explained in easily digestible language, which encourages those who don’t want to understand it to resort to ridicule.

It is an utterly meaningless phrase but appears to rely upon volunteers filling the void created by cuts in local authority funding.

It seems to be a way of getting volunteers to perform the services that we already pay for in taxes.

Knowing what it is is one thing. How it will work is another. Not all levels of society can be expected to participate, even if they know what it is in the first place.

Another word for Big Brother.

Issued: 15/02/2011

Do you have a question for UK businesses? Email kris.lea@touchlocal.com to submit your suggestion.

On January 4^th of this year the standard rate of VAT was increased from 17.5% to 20%. Touch Local carried out a poll amongst a sample of UK SMEs registered on our directory to find out the effect the VAT increase has had on their business one month on.

The Survey

In the month since the VAT rate increased to 20%, has it had a detrimental effect on your business?

The Results

Yes: 347 (33%)
No: 547(54%)
Don’t Know: 135 (13%)

Total responses:  1029

Summary:

Over half of small business respondents (54%) who took the survey do not believe the rise in VAT has had a detrimental effect on their business. On the whole, they have not noticed a significant change in output or profit, with a few finding that business has in fact increased in the first month of this year.

A third of respondents (33%) believe that their business has been negatively affected by the increase, with many commenting that they have been forced to increase their prices, which has resulted in customers looking for cheaper alternatives. Other business owners have attempted to absorb the rise to avoid passing the costs on to their customers, but are finding they are forced to make cutbacks to make the move financially viable.

A minority of respondents (13%) believe it is too early to comment on the impact the VAT rise has had on their business.

See below a selection of comments received from respondents:

If you have not been a victim of identity theft yourself, you have probably heard of cases where fraudsters acquire information about another person obtain credit or other services under a falsely assumed identity. But this problem doesn’t apply only to individuals. In recent years, fraudsters have been stealing entire business identities in a scam known as “company hijacking”.

This type of identity theft currently accounts for £50 million of losses for SMEs a year and can have appalling consequences. For example, fraudsters can change the directors of the company and the “new” directors can open bank accounts, have goods delivered to the “new” address, and effectively ruin the credit rating of the business and leave it with large charges.

As in most cases, prevention is better than cure. That’s why NetTrackz has teamed up with leading online business directories, including The Independent, Scoot and AOL, to provide information, that will help UK SMEs protect their identity.

Our first advice to you is to take ownership of the public record of your company by registering it with Companies House… before somebody else does!

It’s very difficult for Companies House to verify if people who want to change information about a company are actually who they say they are. Therefore, it’s crucial that you are the first person to register your own company. After you’ve done that, any applications from fraudsters will be forwarded to you.

To register your business you can use the Companies House free scheme called PROtected Online Filing (PROOF). Please find more information on the Companies House website:

http://www.companieshouse.gov.uk/infoAndGuide/proof.shtml

Important: Your business could also be in danger of your competitors taking control of how it is represented online. Click here to run a free report that can show you how your business details appear on up to 26 online business directories.

The Team at NetTrackz

In association with Scoot and TouchLocal

The Government has recently passed a new proposal under which Mothers and Fathers will have the opportunity to change the way they take parental leave. TouchLocal carried out a poll amongst a sample of UK SMEs registered on our directory to find out if they support this change in legislation.

The Survey

As a small business owner, do you support the new Government legislation (to be introduced in April) that will allow Mothers and Fathers more flexibility in how they take parental leave?

The Results

Yes:                 400 (34%)
No:                  673 (57%)
Don’t Know:    102 (9%)

*Total responses: 1175

It has recently been revealed that Britain’s largest firms are more confident on spending now than at any point since the start of the credit crunch. TouchLocal carried out a poll amongst a sample of UK SMEs registered on our directory to find out if this sentiment is shared by small to medium sized businesses.

The Survey

Apparently, Britain’s largest firms are more confident now about spending and taking on staff than at any time since the start of the credit crunch. As a small business owner, do you share this outlook?

The Results

Yes: 296 (25%)
No: 781 (66%)
Don’t Know: 121 (9%)

*Total responses: 1198

The businesses who took the survey are all listed on http://touchlocal.com

Summary

Nearly two-thirds of small business respondents (66%) who took the survey do not share the same optimism as their large firm counterparts. Many give a contradictory outlook and are less confident than ever about spending, envisaging that this year will in fact be the hardest since the start of the credit crunch. A quarter of respondents (25%) share this positive outlook, with some businesses experiencing an upturn in revenue or deeming optimism a necessary trait in the business environment. Others however, are positive only due the belief that things cannot get any worse. 9% of respondents believe that the future is too uncertain to establish any upturn in confidence at this moment in time.
See below a selection of comments received from respondents:

• It’s too early to tell. Government policy looks like focusing on large business or encouraging business start ups, but doing nothing or even abandoning existing SME’s
• No Chance, we are at our lowest turnover now.
• Business has improved over the last six months so it feels right to invest in new products and to support that new staff
• Things can only improve
• I think things are still tight as the uncertain future of the ever arising costs
• Business up by 25% since Nov 10 not taking on staff at this point but trade far better
• I certainly hope that this is the case but as with many things of this nature only time will tell. We need to stay positive however, and remember that things never stay the same for long – better times will soon emerge again.
• This year will be more challenging than the last.
• I feel that things could change at a moment’s notice, and I want to keep things tight to weather any storm. I don’t want to be caught out again.
• Too early to say. We’re not out of the woods yet.
• We are small service company working to small businesses. Cash flow very bad, clients cutting back. Considering staff hour’s reductions.
• I feel it is a bit too early to say for my business. Most people I know are still cautious.
• Too early to say how can absorb VAT rise NI rise fuel rises
• With vat at 20% and the Governments major cut backs this is not the time to try and expand.
• There is absolutely no money out there, people were cutting back in November I can see it continue The VAT increase will have little effect on our business and consumer confidence has grown in our sector. Since the election our sales are 14% up and our bank is fully supporting us, a huge difference on the previous year.
• this is the worst it has been
• And I am seeing a more confident outlook from my clients too.
• We’ve already hired 1 new marketer, and are looking to take on 1 web designer and 1 graphic designer later this year!
• As a freight forwarding company we are finding the export market has certainly picked up, we had a great December, and January has started the same way.
• As a business you can’t put things on hold indefinitely, you still need to work and spending is a part of that
• It is still uncertain times for small business. Outlook is good, but cash flow is difficult
• The only way forward is to be positive and it’s working!!!

Issued: 11am – 11/01/2011
Do you have a question for UK businesses? Email kris.lea@touchlocal.com to submit your suggestion.

Whilst drink driving is an issue throughout the year, during the festive period it is regularly in the headlines as it is one of the most common causes of accidents across the UK. Scotland have proposed measures to lower the drink drive limit at the earliest opportunity, with provisions in the Scotland Bill allowing the Scottish Parliament to change the limit north of the border (without involving Westminster). Given the proposals in Scotland, it will be interesting to see if the rest of the UK follows their lead and proposes similar measures moving forward.

Survey Overview
With Scotland planning to reduce the drink driving limit, TouchLocal conducted a poll amongst a sample of UK businesses to see if SMEs would support a complete ban on drink driving in the UK.

The Survey
Following the recent talk of reducing the drink drive limit in Scotland, do you think that drink driving should be banned altogether on UK roads?

The Results

Yes: 621 (58%)
No: 448 (42%)
*Total responses: 1069

The businesses who took the survey are all listed on Touchlocal.com

Summary
Over half of the respondents (58%) feel that drink driving should be banned altogether on UK roads, with feedback including that we should follow other countries by having a zero tolerance policy. 42% felt that there should not be a complete ban, however many commented on how a lower limit (like the proposal in Scotland) would be welcome. Interestingly, respondents from those for and against a complete ban commented on other factors that they felt were equally (or more) dangerous when behind the wheel, such as driving whilst under the influence of drugs.

Selection of comments and suggestions from respondents
• A reduction would be good, but it wouldn’t need to be banned. Drinking while under the influence of drugs should receive higher sentences than they do
• It’s too confusing saying you can drink X amount, just make it illegal from drinking at all then driving
• I don’t think you should drink anything if you intend on driving
• Current limits serve the purpose
• That would be completely impractical
• It will save many lives
• The present law seems to work fine
• This would criminalize the sensible driver who has limited themselves to a glass of wine with their dinner whilst doing nothing to curb the habitual drunk who risks lives by driving when well over the limit
• People have different tolerance levels. However, limits should be lowered and more random stop checks and call lines should be set up
• As long as there are safeguards for people with small amounts of alcohol in their blood the following morning
• Could cause issues for persons on medication that may have alcohol in it
• It would finish off many rural pubs
• I do think something should be done, but a complete ban would kill the country pub!
• More often than not that it is innocent victims that suffer most from drunken drivers so the limit should be lowered nationwide
• Should this become law there would be no margin for error, so perhaps it would cut down on the people who seldom drink and may save them making an irrational judgment
• I believe that more could be done to educate drivers on drink/driving as I firmly believe that at least half of the drivers prosecuted honestly think that they are under the limit. Breathalyzers in Pubs and Clubs would reduce the numbers of drink/driving offences
• We are too strict on this. More people die from falling off a ladder than drink driving FACT keep it as it is and raise drinking age to 22
• If someone has had any alcohol in previous 24 hours, it will show up on a test. Sensible people stick to below the limit and most will not drink if they are driving. However to deny a person one glass of wine with a meal seems ridiculous, considering that the majority of people are killed in accidents that do not involve alcohol and some of the alcohol related accidents are drunk pedestrians as well. Those who drink and drive will probably not be deterred from doing so, as they already flout the law. Of course Scotland has its own problem with drink which is very severe. They should concentrate more on prosecuting landlords who serve people who are intoxicated and this may well save more lives and prolong others rather than denying the vast majority of responsible citizens who might like to enjoy a glass of wine with a meal
• I think it’s hard to determine when you have had your quota and therefore it would be much simpler just to ban drinking totally
• It is unworkable and immoral to catch people the morning after. However the existing limit should be enforced more rigorously
• We have a respected law in this country, respected by the huge majority who see drink driving as a serious, anti-social crime. There is no need for a lower limit but it is now time to give the police the ability to carry out random tests and more of them. In France 64% of all motorists have been tested for alcohol in the last 3 years, in Holland it is 63%. In the UK it is 9%. Just not good enough
• Other countries, especially those with dark winters (Scandinavia) have lower limits. The UK has a drink problem and making drinking and driving even more difficult may help reduce the problem. Losing your driving license is career threatening
• As a trainer to those who have lost their driving license due to drink & the state I see them in, I am in support of this! Attitudes of drink drivers are dreadful & they seem to take it quite lightly (an excuse to drink themselves stupid once they have lost their license) unless they have killed someone in the process. I have worked in Sweden & everyone is much more thoughtful!
• Having a low sensible limit is manageable. Having a zero limit will encourage people who have only one drink to continue as they will already be over the limit. It will also decimate rural/country pubs where they are reliant on car driving customers
• Rural pubs will go out of business
• Too many people drive after ’1 or 2′ not realizing that they reaction times and ability to drive can still be impaired especially if they are tired or haven’t eaten well. Save lives and stop anyone drinking while driving – there is no need to drink then drive and it might encourage people to help the environment and their local community by taking public transport
• Other countries have a zero tolerance on drink driving so should UK
• Empower people so they can think for themselves

Issued by TouchLocal 14:19 – 08/12/10