Published: 30/01/12
Research by the Federation of Small Businesses (FSB) has revealed confidence amongst SMEs to be at the lowest level since its ‘Voice of Small Business’ Index started in 2010.
The business organisation for SMEs said that confidence had plummeted by 15.2 points in the final quarter of 2011 to a record low of -24.5. It attributed the fall in confidence to businesses being hit by high inflation, rising utilities bills and reduced consumer spending power.
The Index, which draws on 1,600 responses from across the country, also found that one in eight firms (12.6%) expect the economic situation to worsen in the coming three months.
John Walker, national chairman of the FSB, said: "The message is clear - things are going to get worse before they get better.
"But, we are hopeful that as the inflationary pressures lessen in 2012, that businesses will become more confident. There are some good policy proposals in the pipeline too."
Walker concluded: "However, the government needs to quickly put in place the actions that it has promised. Small firms have heard what the government has to say but are still waiting to see implementation.
"We believe that must be the government's priority: to make 2012 the year of doing, with the aim of creating a dynamic business landscape in which our entrepreneurs can grow and flourish."
Insurance market bucks the trend
In terms of buying insurance it’s not all doom and gloom; the insurance market does not typically follow the general economy. We are currently in a soft market, which means that there is available capacity to underwrite risks and therefore much more competition between insurers. Competition creates more products to choose from, with underwriters generally looking to be innovative in what they offer their clients.
When you choose an insurance broker like Flint we work with insurance suppliers on your behalf – examining all available products to ensure you get exactly what you need.
Our insurer partners are some of the best in the market; you get the right terms, at a competitive rate. For any insurance queries at all call our Commercial Team on 0845 371 1452.
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