Region’s businesses performing well, but bosses are “realistic” about depth and scale of recession, according to Clifton Asset Management
Small businesses in the South West are outperforming their UK regional counterparts, according to new research.
When asked about their businesses’ performance in the last three months just under half (47 per cent) of survey respondents in the South West said business had improved in the last quarter.
That’s compared to 42 per cent in Wales, 39 per cent in the South East and North West, 38 per cent in London, 31 per cent in the West Midlands and 30 per cent in the North East and East Midlands.
Meanwhile the research, which was carried out by Clifton Asset Management (CAM), also shows that more than three quarters (77 per cent) of South West small business owners see “no point” in applying for financial help under the government’s flagship scheme to help them through the recession, the Enterprise Finance Guarantee.
However, while the figures show that the region’s small business community are weathering the economic storm, it also highlights that they are realistic about when any recovery might occur, with more than half (55 per cent) saying they believe the recession still has more than a year to run.
In addition, more than three quarters (78 per cent) believe retirement is further away now than it was a year ago, with a full 32 per cent claiming the recession has forced them to cancel their retirement plans altogether.
“While many commentators have spent the last quarter desperately trying to talk up the economy our research with the people at the sharp end, UK small business owners, paints a very different picture,” said Anthony Carty, a director at CAM.
“SMEs are in the eye of the storm right now and over half (55 per cent) in the South West believe the recovery is going to be long and slow. This chimes with government forecasts that we could be into 2011 before the recovery is properly under way, meaning retirement in the current climate remains a pipe dream for the majority of our respondents in the region.”
Turning to the issue of the government’s Enterprise Finance Guarantee (EFG), he said: “It is a sorry state of affairs when, at a time when it is most needed, awareness of the EFG among business owners in the South West has dropped significantly from 73 per cent last time to the current 67 per cent.
“In any case our research reveals that of those business owners who are aware of the scheme, 77 per cent see no point in applying for it and, of those who have applied, just one per cent have reported success in securing much-needed finance.”
Mr Carty added: “Our research shows that less than half (44 per cent) of the region’s SMEs believe the South West is better placed than the rest of the country to withstand this recession, all of which tells me they are realistic and recognise that any recovery is going to be slow and painful, especially at a time when they are bracing themselves for a ‘double-whammy’ of tax increases and public spending cuts.”
