Confidence in the economy crucial for British SMEs

IN: Business news

Confidence is critical to small business growth, according to a survey from the University of Lincoln.

The research from the Business School at the institution, which studied how perceptions of the economy affected growth, confirmed that small businesses were directly impacted by their perceptions of the economy, influencing their decision to invest or save.

The results, printed in the Journal of Small Business and Enterprise Development, highlights the link between business confidence and growth ambitions. Speaking about the survey, Professor David Rae, Director for Enterprise & Innovation in Lincoln Business School at the University of Lincoln, commented: "Confidence is critical to small business growth. As such, it is important for policymakers to listen to the concerns of owner-managers.

"The results of our survey, albeit a snapshot of one region of England, indicate that the outlook of small business owner-managers is influenced more by immediate trading conditions than national or international economic factors."

The report comes after a report in May that suggested confidence among UK businesses was continuing to improve. The quarterly Business Confidence Monitor suggested that confidence was at its highest level since 2010. At the time, Michael Izza, chief executive of ICAEW, said that 'recovery is starting to stand on more solid ground.SME confidence is crucial to the continuing recovery of the UK economy.

The content published on this website is intended to provide information only. The reader should seek advice from experts on the subject matter and independently verify the accuracy and relevance of any information provided here before relying upon it or using it for any reason. You can view our terms and conditions here.

Want to read more?

  • Business
  • SME
  • Article