A report that has recently been released from the Federation of Small Businesses has revealed that confidence is growing amongst small businesses. A reading of -5.6 was recorded in the final quarter of 2012, however this has increased to +6.3 during the first quarter of 2013.
Despite an increase in confidence amongst small businesses, it's been revealed that ˜investment intentions' have dropped. The main factors that have been suggested for this drop are the ˜stalling domestic economy' and the difficulty in accessing finance.
The same survey suggested that small businesses are acting ˜tentatively' and many are expecting their growth levels to drop this year due to their cautious approach.
The survey also uncovered some other interesting findings. 38.6% of small firms that had applied for finance were offered interest rates of less than 4%. Small businesses are still remaining cautious when it comes to recruiting staff as those surveyed suggested that they would only expect to ˜marginally' increase staffing levels over the coming months. Business costs have increased and the reason for this was believed to be down to an increase in fuel costs and utility bills.
Jarnel Grewal, Director at Redford and Co Chartered Accountants
, commented, œThe survey is encouraging and any positive development has to be welcomed. Our view is that caution prevails but there are clients in certain sectors looking for opportunities and are buoyant about prospects.
Redford and Co is a firm of chartered accountants based in central London who specialise in offering businesses tax planning advice
, investment advice and business advice. They work within many sectors, including legal and media. For further information on Redford & Co visit their website for details.