Small businesses are determined to beat the credit crunch despite the weakening economy, a new report has found.
The annual UK Enterprise Survey Report, by the Institute of Chartered Accountants in England and Wales (ICAEW), found businesses in the UK are not willing to give in to economic pressures.
More than 80% of businesses said growth is one of their main objectives – even though nearly two-thirds said the downturn has had a negative effect on them. Growth plans remain unchanged from last year, with the average annual growth target at just over 12%.
Over 70% of small businesses said the credit crunch it making it harder for them to plan, while more than half said it had increased their long-term borrowing costs. However, over 50% said the downturn will weaken their competitors, while nearly a third said it has increased their opportunities for business acquisitions.
Clive Lewis, of ICAEW, said there is little doubt UK businesses have suffered over the last year, with no immediate prospect of things picking up.
“However, businesses show that they are determined to continue doing what they do best: focus on growth and increased profitability,” he added.
“There is a clear message to government in these survey results – businesses need help to get through this difficult economic period.
“That means fewer regulatory and taxation changes, proper consultations on any proposed changes and enough time and support for businesses to get to grips with it all.
“What we want for UK businesses is a level playing field both within the UK and with other markets, and that requires greater stability from the government to assist businesses through the uncertainty caused by the current economic turbulence,” he said.
© Crimson Business Ltd. 2008
