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Over half of Britain's SMEs lack confidence in the future economic prospects of the country according to new research released today. Sixty-two per cent of the managing directors and financial directors surveyed in the Ipsos MORI poll believe general economic conditions will get worse over the next 12 months and 45 per cent think that the economic conditions for their business will also worsen.
The research was commissioned by the FDA, a financial trade body, to examine the opinions held by managing and financial directors of SMEs about the current economic and political climate.
While the poll did reveal concern about the future of the economy, when questioned about the impact of Gordon Brown's policies, 56 per cent of respondents thought his 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 per cent stating the policies had been fairly good or very good for their company.
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 per cent of respondents believe this hasn't been successful.
The research also explored SMEs opinions regarding their preferred leader, which revealed that 53 per cent oppose Tony Blair stepping down as Prime Minister immediately for Gordon Brown to take over. The Conservative leanings of SMEs also came to the fore when they were asked who would be the most capable politician to lead the country once Tony Blair steps down - David Cameron came out on top with 65 per cent of the vote.
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. Moreover, the results of the survey show that challenges remain in creating a constructive environment for SMEs. The Government has made progress in some areas but it is clear that there remains work to be done to support the further development and growth of the SME sector as Blair's premiership draws to a close.
"Respondents to the poll indicated that there is a still a severe lack
of understanding of the climate in which small businesses operate. 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.
"The FDA believes that financial services providers have a great opportunity
here to educate MDs and FDs about the range of the funding options available
for initial start-ups and long term growth. The correct guidance and advice
will ensure that companies are equipped with the best possible resources to
create a successful business."