Small retailers’ sales expectations have dropped to a six-year low, a new report has found.
The report, by the Open University’s Small Enterprise Research Team (SERTeam), blamed the credit crunch and plummeting consumer confidence for the drop.
It said the credit crunch has hit small retailers the hardest, adding that the slump in the housing market means construction sector is suffering.
More than 90% of businesses said they ‘doubt’ the government understands small businesses well enough to regulate, while a similar number said there is a ‘lack of joined-up thinking’ across government departments.
More than 60% of small firms said they spend more time on regulations and paperwork than at the same time last year, while just one in ten believes the government consults well with businesses.
Professor Colin Gray, SERTeam’s chair, said the plummeting confidence levels followed a predictable pattern.
“We are seeing a noticeable slide in the economy which is not surprising given the increased rate of business closures recorded in 2006 and into 2007.
“Worsening economic conditions appear to have fed through into a slowdown in the rate of new business starts. The only sectors expressing any optimism are agriculture and services, where output and prices remain relatively strong,” he said.
© Crimson Business Ltd. 2008
