The Federation of Small Businesses (FSB) has stated that the reason that many SME’s are now suffering due to a lack of financing options, tough domestic conditions, and weak customer demand. Their new ‘Voice of Small Business’ index revealed that firms are now less confident in the third quarter despite the fact that the government has spent the better part of this year attempting to boost lending opportunities for small companies.
Despite this fact, overall SME owners are still optimistic that things will improve with more than 2,500 survey respondents stating that they plan to expand their business within the next year in the face of an increase in finance refusals.
National chairman for the Federation of Small Businesses, John Walker, stated that the drop in firm confidence is not all that surprising which sends the clear message that businesses want to invest and grow but they need some help to do so. He added that it is still frustrating the FSB that more has not been done to help improve bank financing