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Small businesses remain resilient despite uncertain UK economy

Economy First in Brexit

A report produced by the Federation of Small Businesses has revealed the strength and resilience of small businesses throughout the UK, despite the challenges still facing the UK economy. The Federation of Small Businesses carried out the Voice of Small Business Member Survey, which revealed that new or improved services and products have been launched during the last two years by 70 percent of small companies.

This is 15 percent more than in 2009, which is a demonstration of the courage and strength of the UK’s small businesses during the economic downturn. The national chairman of the FSB, John Walker said:

“In the forthcoming Budget, the chancellor must ratchet up the growth agenda by simplifying the tax regime, promoting alternative sources of finance and thinking small first when making changes to employment law.”

Walker further stated that although small companies have demonstrated resilience during hard times, the government must also display the same courage and determination for growth. The results of the report follow the announcement that the five main banks in the UK, RBS, Lloyds, HSBC, Barclays and Santander had failed to meet the agreed target of £76 billion to small businesses. Project Merlin was introduced to encourage lending to small and medium enterprises in the UK, but failed by £1.1 billion. Other areas of business finance have now been introduced, so businesses don’t have to rely on banks. Outsourcing to a small business accountancy will enable financial planning to include various sources of funding, while minimising costs.

 

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