Member Article

SMEs uncertain over political change

Over half of Britain’s SMEs lack confidence in the future economic prospects of the country, according to new research commissioned by financial trade body FDA.

62% of the managing directors and financial directors surveyed believe general economic conditions will get worse over the next 12 months, and 45% think that the economic conditions for their business will also worsen. 56% of respondents thought Gordon Brown’s policies had been fairly good for the British economy as a whole since 1997. They were also relatively positive about the Chancellor’s policies for SMEs, with over 40% stating the policies had been fairly good or very good for their company.

65% of business people believe David Cameron would be the most capable politician to lead the country once Tony Blair steps down, and 53% of business people oppose Tony Blair stepping down as Prime Minister immediately for Gordon Brown to takeover. The poll also suggests that the government has work to do in terms of improving access for finance for SMEs. While there has been a concerted effort to make funding more available to young and growing businesses, 57% believe this hasn’t been successful.

Kate Sharp, Chief Executive Officer, of the FDA said: “What is clear from the results of the survey is that SMEs need certainty, in terms of policy and the political landscape. The Government’s streamlining of their £2.6 billion business support programme, the downsizing of the Small Business Service, and the Tory review of business support schemes all points to a lack of understanding of what businesses really need in order to succeed.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .