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SMEs in UK pessimistic about economy

02 November 2011


			SMEs in UK pessimistic about economy

Nearly three quarters of small businesses believe the UK economy will re-enter recession in 2012, according to new research from credit reference agency Graydon UK.

In a sign that business confidence is still very low amongst UK small and medium-sized enterprises (SMEs), nearly 73% of those asked by Graydon expected that another recession was on the horizon, despite official figures revealing growth in the economy in the last three months.

More than 90% of small businesses also thought that the government should do more to encourage banks to lend to them, while only 8% of credit control managers polled believe that the establishment of an SME bond market by the government would help businesses access funding. However 38 per cent predicted that such a fund will have no impact on firms seeking funds for growth.

One third of credit control managers also believe that plans for a bond market will be less effective in terms of improving access to finance for small firms than the government’s Enterprise Finance Guarantee, or HM Revenue and Custom’s Time to Pay Scheme.

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