Are UK SMEs now more confident about expenditure?
Friday, January 14th, 2011
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.



