Nearly three quarters of small businesses believe the UK economy will re-enter recession in 2012, according to new research from credit reference agency Graydon UK.
In a sign that business confidence is still very low amongst UK small and medium-sized enterprises (SMEs), 73% of those polled by Graydon anticipated that another recession was on the horizon, despite official figures revealing growth in the economy in the last three months.
Over 90% of small businesses also argued that the government should do more to encourage banks to lend to them, according to new research from credit reference agency, while only 8% of credit managers polled believe that the establishment of an SME bond market by the government would help businesses access funding. Over a third (38 per cent) predicted that such a fund will have no impact on firms seeking funds for growth.
One third of credit managers also believe that plans for a bond market will be less effective in terms of improving access to finance for small firms than the government’s Enterprise Finance Guarantee, or HM Revenue and Custom’s Time to Pay Scheme.
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