New research shows that most small business owners do not agree with the Chancellor’s statement that the economy has finally reached the stage of recovery. While 55% of large businesses were found to agree with the statement that was made by George Osbourne about the UK economy finally recovering, another 35% still disagree.
President of R3 the insolvency trade body that commissioned the report titled the Business Distress Index Liz Bingham stated that the economic news as of late has been positive but it is important not to overlook the small businesses that still have a lot of challenges in their way to recovery so now is not the time to step back.
She continued to say that many large businesses are confident in the future because they have the means to ride out the bumps that are still ahead but small businesses still have a lot of pressures sitting on them such as growing demand and poor access to future finance.
Bingham added that most people forget that for a business the most challenging survival time is following a recession because there is not that much investment available for the company but they still face the challenge of attempting to grow. Therefore, while it may seem as if the economy is recovering for small businesses it might take a while longer.
According to the Business Distress Index, 51% of small businesses were able to report signs of growth although 35% stated that they have seen at least one sign of business distress such as using an overdraft, a dropping market share, or decreased sales volume. This is still an increase from March of 2013 when 40% reported that they had suffered from some type of distress and much better than the 53% reported in June of 2012.