SME confidence reaches an all time low

According to the statistics for last month, the confidence of small and medium enterprises in the UK has marked a significant decrease and has reached near the record lows. These changes are caused by the instability of the economy in the Eurozone during the summer. The report covers the time between July and September of 2012. It shows that only 46% are confident in the UK’s economic, marking a 5% decrease when compared to the 51% registered in the previous quarter.

The primary reason for the fall of confidence in these enterprises is the unstable economical climate in the Eurozone. The survey conducted by Western Union Business Solutions International Trade shows that 61% of the exporters and importers involved in the research pointed out the above factor as the main reason for the confidence of SMEs. 50% of SMEs point out that their largest concern is the ability to covert euros in cash reserves.

The cutbacks accepted by the government have a negative impact on SMEs and 48% of the surveyed companies believe that the measures taken by the government should be reduced to respond to the double-dip recession which the UK is entering. 25% of SMEs believe that the government has taken the right decision and it shouldn’t change anything.

Europe is still the largest trade partner of the small and medium enterprises in the UK. 68% of these companies state they purchase goods from supplies in the Eurozone. For comparison, 78% of the SMEs purchased their goods from Europe in the last quarter. Meanwhile, 76% export their goods to customers in Europe.

47% of businesses believe that the unstable economy in Europe has had a negative impact on their company and 18% state that the instability will have an impact on them in the near future. 20% of British SMEs had planned to use credit cards to finance themselves, but only 2% of them have done so.