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.

As of 24th September, local search and business reviews website, Touch Local, acquired 100% of the share capital of Enable Media, the company that owns and operates Scoot.  Touch Local’s CEO, Mark Livingstone, summarised the key benefits of bringing the 2 companies together:

• A combined customer base in excess of 25,000 local business advertisers on annual subscriptions and growing at some 8% per month
• More than 2m UK businesses listed, 500,000 of whom have activated their profiles
• Over 3.5m uniques and 6m searches per month
• A field and telesales team in excess of 130 people and a really established platform for further growth
• A forward combined revenue run rate in excess of $32m and EBITDA in excess of $7.5m
• Strengthening of distribution strategy that will enable more exclusive partners to be added this year in addition to our local search partnership with AOL.

We’re really looking forward to bringing some great new products to our combined customer base!

If your business has a free listing on Scoot.co.uk, one of the UK’s leading online business directories, you can now add a Special Offer to your listing free of charge.

In the current economic climate, everyone is looking for a good deal at local businesses, so adding a special offer, coupon or discount voucher to your listing on Scoot is a great way to attract more customers to your business.

Just search for your business on Scoot, then click the ‘Update this listing’ link.  This will show you the information we currently hold about your business and enable you to add the special offer.  When you’ve finished making your changes, go to the purple tab and save your details before leaving this part of the website.

The iPhone app includes a number of standard icons as default

Scoot has launched a new location-based iPhone application that helps mobile users find information about local businesses in just a couple of taps.

Free to download from the iPhone App Store, Scoot uses the iPhone’s GPS capability to locate the user, then find the nearest cafe, bank, restaurant, petrol station and much more.  It’s so quick and easy to use when you’re on the move.  There’s no need to type anything in: you just open the app and tap the relevant icon – cafe, for example.  Scoot will then show your nearest cafes with name, address, phone number and distance from your current location. 

You can also use Scoot to find your nearest special offer!  Just tap the Offers icon to see a list of nearby businesses that have posted a special offer or coupon on Scoot.

If you tap the ‘More’ button on each business listed, you can see additional information which might include descriptions, opening times, payment methods, special offers/coupons, pictures and even videos.  You can also see the business on a map, get directions, click to call or view their website.

The app includes a number of standard icons as the default, representing some of the more popular business categories on Scoot.  However, you can easily customise the application by using a simple on/off toggle button to add search icons for more categories or even your favourite brands.  We’ll be adding more categories and brands in future releases of the app, so will keep you posted.

Find futher details here, or visit the App Store