January 17, 2014, by Kelly Cookson
Confidence in the future of business among UK SMEs
In the December 2013 Business Barometer survey, our panel of UK SMEs and business advisers were asked about confidence levels in investing in the future of business. We also asked a set of trends questions to gauge how situations have changed over the last 3 months.
The responses from UK SMEs on business confidence were as follows:
| How has the severity and long duration of the last recession made you feel about investing to meet possible more buoyant conditions in the future? | |
| Significantly more cautious | 6.1% |
| More cautious | 45.8% |
| No change | 37.3% |
| More positive | 9.6% |
| Significantly more positive | 1.2% |
| Over the last 3 months, has your business: | |
| Expanded by more than 5% | 15.7% |
| Expanded by 3 to 5% | 9.6% |
| Expanded by 1 to 3% | 25.3% |
| Remained static | 38.6% |
| Declined by 1 to 3% | 6% |
| Declined by 3 to 5% | 3.6% |
| Declined by more than 5% | 1.2% |
| Don’t know | 0 |
| How has your situation with regard to skill shortages changed in the last 3 months? | |
| Improved significantly | 1.2% |
| Improved somewhat | 4.8% |
| No change | 68.7% |
| Worsened somewhat | 12% |
| Worsened significantly | 1.2% |
| Not applicable | 12% |
| How has your situation with regard to finance changed in the last 3 months? | |
| Improved significantly | 2.4% |
| Improved somewhat | 16.9% |
| No change | 67.5% |
| Worsened somewhat | 13.2% |
| Worsened significantly | 0 |
| Don’t know | 0 |
| How has your situation with regard to market demand changed in the last 3 months? | |
| Improved significantly | 6% |
| Improved somewhat | 44.6% |
| No change | 34.9% |
| Worsened somewhat | 13.3% |
| Worsened significantly | 1.2% |
| Don’t know | 0 |
| Over the next 3 months, do you expect your business to: | |
| Expand by more than 5% | 13.3% |
| Expand by 3 to 5% | 18.1% |
| Expand by 1 to 3% | 28.9% |
| Remain static | 28.9% |
| Decline by 1 to 3% | 6% |
| Decline by 3 to 5% | 2.4% |
| Decline by more than 5% | 1.2% |
| Don’t know | 1.2% |
UK business advisers were asked about business confidence among their clients:
| How has the severity and long duration of the last recession made your clients feel about investing to meet possible more buoyant conditions in the future? | |
| Significantly more cautious | 9.1% |
| More cautious | 59.6% |
| No change | 20.2% |
| More positive | 7.1% |
| Significantly more positive | 0 |
| Don’t know | 4% |
| Over the past three months, have you experienced a change in the number of requests for business advice? | |
| Significant increase | 9.1% |
| Slight increase | 48.5% |
| No change | 34.3% |
| Slight decrease | 6.1% |
| Significant decrease | 2% |
| Not sure | 0 |
| Over the last three months, to what extent have you witnessed a change in the number of people wanting to start up a business? | |
| Increased significantly | 6.1% |
| Increased slightly | 28.3% |
| Remained the same | 36.4% |
| Decreased slightly | 9.1% |
| Decreased significantly | 3% |
| Not applicable | 17.1% |
| In your experience, across your client businesses, has access to finance improved or worsened in the past 3 months: | |
| Improved significantly | 0 |
| Improved | 18.2% |
| Remained the same | 60.6% |
| Worsened | 12.1% |
| Worsened significantly | 2% |
| Not applicable | 7.1% |
| Approximately what percentage of your client businesses find that there is a shortage of appropriately skilled and or qualified applicants for vacancies? | |
| None | 7.1% |
| 1-10% | 23.2% |
| 11-25% | 25.3% |
| 26-50% | 22.2% |
| 76-100% | 7.1% |
| Don’t know | 15.2% |
| In your estimation, what proportion of your clients’ businesses will have ceased trading in the next 12 months as a result of the problems they confront? | |
| None | 25.3% |
| 1-10% | 50.5% |
| 11-20% | 9.1% |
| 21-30% | 5.1% |
| 31-50% | 0 |
| Over 50% | 0 |
| Don’t know | 10% |
Adviser panellist, Ron Stradling, commented: “UK Governments have consistently failed to invest in the future of this country and the current government is making matters worse with the level of reduced investment/ cutbacks and selling country possessions to other countries.”
The Haydn Green Institute for Innovation and Entrepreneurship runs two online UK business surveys: UK Business Barometer (UKBB) and UK Business Adviser Barometer (UKBAB). The results of the surveys are instantly processed and posted on their respective websites.
More information about the UKBB and the UKBAB can be found on the web at www.ukbb.ac and www.ukbab.ac Businesses and advisers wishing to contribute as panellists on the project can register via the websites.
The UK Business Barometer has a group on LinkedIn and can be followed on Twitter @UKBB_UoN
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