Small businesses ‘pessimistic’ about the future

Over three quarters of small businesses are less confident since the formation of the coalition government, according to a new survey by specialist business group buying website, Huddlebuy.co.uk.

Over three quarters of small businesses are less confident since the formation of the coalition government, according to a new survey by specialist business group buying website, Huddlebuy.co.uk.

The poll shows 77% of small businesses report less confidence in the economy since the coalition came to power and 64% said they were ‘pessimistic’ about the effects on their company of the new measures announced by the Government in its Budget for growth.

Some 95% stated that they think the Government does not do enough for small businesses. However,  73% expect their business to perform better in 2011 than last year, suggesting, says Huddlebuy, that they are confident in their own ideas and strategies. Three quarters of respondents claimed to be ‘more determined than ever to succeed’.

However, many said they had put plans for growth and expansion on hold. According to the survey, 68% of small businesses have delayed hiring new staff due to uncertain economic conditions.

Huddlebuy co-founder, Per Larsen, commented: “As a small business ourselves, at Huddlebuy we’re well aware of the challenges that face small businesses so many of these survey results did not come as a shock. What will be of particular concern to the Government is the fact that more than two thirds of small businesses have shelved any idea of hiring new staff due to uncertain economic conditions. The Government is banking on the private sector taking up the public sector slack, but our survey suggests this is little more than wishful thinking.”





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