A recent study by the British Chambers of Commerce (BCC) has revealed that economic growth saw a drop in the fourth quarter of 2010 as the gross domestic product (GDP) slowed to 0.4 – 0.5% in the last three months of the previous year.
This is hardly surprising given the fact that the UK experienced it’s worse bout of weather in December last year. It’s certainly worth considering that this would have had the most significant impact on business given the fact that the build up to the Christmas period usually indicates an increase in business for many private sector organisations.
Many UK economists and small business groups remain firmly of the opinion that small firms operating in the private sector will help drive economic growth over the course of 2011.
The BCC have recently called on the British government to help private sector businesses by putting a better support network in place for small businesses. It’s thought that this will help more business start-ups, boost employment and support business growth.
The Director General of the BCC, David Frost, commented:
“We must encourage more new start-ups, more employment, create stronger companies and support export potential. While the BCC’s survey points to our economy recovering, we call on the government to take concerted action now to ensure recovery continues. Only a clear growth strategy set alongside existing plans for deficit reduction, will give businesses the confidence to grow through 2011 and beyond.”
Regardless of the expert’s stance on Government small business policy, one thing is clear, business confidence does appear to be high at the moment. With Uk exports on the increase the manufacturing sector stands-out as a major player. According to recent figures manufacturing exports are at their highest level since the fourth quarter of 1994.
Unfortunately the service sector’s performance still remains in a fragile state. The BCC have raised concerns as the impact of the most recent 2.5% VAT increase is yet to be felt by many firms.