Clifton Asset Management

NO END OF RECESSION IN SIGHT FOR UK SMES

More than half of UK business owner-managers are pessimistic about the future, according to Clifton Asset Management

The majority of the UK‘s small business owners think the recession is going to get even worse for them before it gets better.

That‘s according to the latest survey of more than 1,000 business owner-managers carried out by Clifton Asset Management (CAM), who provide specialist financial and strategic advice to SMEs.

When asked: “has your business given you cause to believe the worst of the recession may be over?” a full 58 per cent said “no”.

A further 17 per cent replied that they were “unsure”, with the remaining 25 per cent saying “yes”.

The CAM research also revealed marked differences in attitudes among business owners in the various regions in England and Wales.

While London (73 per cent) and the South East (58 per cent) remain the most optimistic in terms of their belief in their region being better placed than the rest of the UK as a whole to withstand the recession, businesses in the capital are also among the most pessimistic in terms of their perception of how long the recession has left to run.

Just 16 per cent of the survey‘s respondents in London said their businesses had given them cause to believe the recession had bottomed out, the lowest figure of any region bar Wales (12 per cent).

Meanwhile businesses in the West Midlands continue to be the most pessimistic in terms of the relative strengths of their region‘s economy, at the same time being the most optimistic when it comes to seeing an end to the recession.

Only 16 per cent of West Midlands firms believe their region is better placed than others to recover from the downturn, but 27 per cent say they believe the worst of the recession may be over – a figure only bettered by the South East (30 per cent).

“It is interesting to see that while traditional manufacturing areas such as the West Midlands, Wales and the North East remain the most pessimistic about their region‘s prospects, it is Londoners who more than anyone else see few signs that the UK is emerging from the economic doldrums,” said Neil Greenaway, managing director at Clifton Asset Management.

“While you could be positive and say it is encouraging that a quarter of our SMEs now believe the worst of the recession is over, it is disturbing to note that while countries such as France and Germany are reporting that they are now out of recession, more than half of our survey respondents still see no end in sight for the UK.

“Many issues need to be addressed by the Government, not least improving the flow of finance from the banks into cash-starved SMEs and clamping down on outrageous and extortionate bank charges, before business owner-managers can really start to feel fully confident about the future again, which will be a crucial factor in lifting the UK out of this recession.”

ENDS 21st September 2009

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk