Small firms' "tentative recovery" from the credit crunch (From Redhill And Reigate Life)

Small firms' "tentative recovery" from the credit crunch

12:55pm Wednesday 1st July 2009

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Small firms in East Surrey which were hard hit by the credit crunch are starting to experience a “tentative recovery.”

That was the message this week from the Surrey Hills East branch of the Federation of Small Businesses.

The branch said that ten months of FSB data showed small firms were beginning to enjoy an improved outlook.

The FSB has documented the economic downturn’s impact on small firms since last September.

It said a comparison of FSB data collected over the past ten months suggests that the economic position small businesses are in is starting to improve since a low point at the end of last year.

A rising number of small businesses are now experiencing an increase in trade, with the latest poll showing 23% of FSB members noticing a rise, compared with 16% in February.

According to the latest local poll, 60% of business owners in the Surrey area are looking to act on a rise in confidence and say they plan to grow in the next six months, with firms hoping to invest in new products, more staff and marketing.

More than half of respondents (57%) said they were ‘quite confident’ about the future prospects of their business.

The FSB is urging the Government to ensure small firms can be at the forefront of tackling unemployment by supporting apprenticeships, short-time working subsidies, and increasing the thresholds before Income Tax and National Insurance contributions are payable, which would benefit employers and employees.

Richard Dandy, Surrey Hills East branch chairman, said: “Small businesses are naturally flexible and innovative in recessions and these figures show that despite the very many negative forces on them, they are being cautiously optimistic and are looking to expand.”

He said: “ Although we are certainly not out of the woods yet, many small firms are seeing increased footfall and finding it easier to obtain crucial finance in the winter months, when things were at their worst so far.

“The Government must look to small businesses to build the post recession economy, and help them employ more people and ease the bureaucracy and tax burdens which many still face.”

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