According to small businesses in London the support schemes that have been put in place are inadequate, however, according to research carried out by Business Junction, only 22% of the 400 small firms questioned have actually accessed the schemes that the government have put in place. Over half of the companies questioned believe that the schemes are failing to make any impact at all.
The Director of Business Junction, Mark Herring, suggests that ongoing support in the capital must be examined and the London and national governments should be talking to small businesses to discover why the present system in place is not working and ideally “create a new, fairer and easier process.”
It doesn’t help that according to research at least 50% of all overdraft applications made to banks by small businesses are still being rejected. This, in turn, suggests an unchanged attitude to lending despite the cries for more and the insistence of our government demanding that the banks relax their attitude to commercial lending in order to help small businesses boost our fragile economy.
Curiously enough, regardless of these rather grim figures, 83% of the small businesses surveyed expect turnover to increase or at the least stay constant in the first quarter of 2010, compared with 75% in the second quarter of 2009.
Despite what we might think, in order for small businesses to reach these optimistic figures we still have to partially rely on what Alistair Darling announces in his Pre-Budget Report on Wednesday 9th December 2009 before making such flamboyant statements.
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