Despite high inflation levels, little improvement in commercial lending, impending tax increases and a looming General Election, a new report by accountancy group, Vantis, suggests that UK small business owners are becoming increasingly confident about the state of the economy.
The Vantis report suggests that 58% of the small businesses surveyed are confident that the economy will improve over the next 12 months.
David Rankin, the Managing Director at Vantis, has said that small firms will be able to manage finances despite the uncertainty generated by the General Election. He went on to say:
“It is encouraging that owner-managed businesses, the backbone of the British economy, are putting their money where their mouths are. Whatever the outcome of the forthcoming election, they believe the market environment is becoming more favourable for business.”
Mr Rankin went on to say that many small businesses have already made the necessary cuts and will now be focusing on sorting their finances out, with 39% putting cashflow as a key priority over the next few months.
Commenting further, Mr Ranking ended on a positive, yet cautious note:
“The Vantis Market inSight survey shows that many anticipate margins to be pressured, but businesses are considering expanding their client bases and services. Nobody is over-optimistic, or thinks we are out of the woods yet, however, this round of our survey shows there is definitely a current air of cautious optimism amongst owner-managed businesses in the UK.”