The Federation of Small Business (FSB) says that its latest survey shows that confidence remains low but small businesses believe that 2013 promises to be a better year than 2011 and 2012.
The FSB said that 2012 had been seen as a very tough year but 2013 looks set to be brighter. The FSB’s national chairman, John Walker, said: “Confidence is still low, with many concerned about a lack of demand and wider economic issues, but our members are heading into 2013 with more confidence than they did going into either 2011 or 2012.” He said, however, that it was early days and that the recovery would not be immediate: “The signs seem to be positive, but it’s going to be a long road ahead, with some economists warning of a triple-dip recession and others expressing cautious optimism.”
The organisation however warns that many businesses are not prepared for the soon to be introduced Universal Credit system which is set to replace the current state benefit system. The changes will mean that businesses will have to tell the authorities immediately if the company sees any payroll changes. The FSB called this a “huge compliance burden” and said that many firms were not aware of the changes, which will come in, in four months’ time.
The organisation also criticised the banks for failing to help small businesses with less than 10% of small businesses saying they had easy access to finances. The UK managed to drag itself out of recession in the fourth quarter of 2012 and its economic recovery seems relatively stable giving a confidence boost to many businesses. Everyone is hoping 2013 will prove to be a happy New Year.
The Pound to Euro exchange rate is currently trading at 1.2310
The Pound to US Dollar exchange rate is currently trading at 1.6308
The Pound to Australian Dollar exchange rate is currently trading at 1.5538
The Euro to US Dollar exchange rate is currently trading at 1.3244
The Euro to Pound exchange rate is currently trading at 0.8123
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