Despite the fact that the retail sector experienced the worst Christmas sales in over three years and the fact that the ‘Big Freeze’ of 2010 lead to an even worse January, at the start of 2010, the mood among entrepreneurs and company formation owners was – on the whole – much more positive than at the beginning of 2009.
However, a recent report by business angel ‘Investors INC’ has revealed that the confidence seen at the beginning of the year has decreased as each month of 2010 has progressed.
The report, which surveyed over four thousand small business, over half of which had been recently formed, revealed that over thirty per cent were concerned that the UK was head back into recession. The report also found that confidence took a further hit in the wake of David Cameron’s announcement that the government was to cut public spending by an estimated ten billion pounds.
The report also asked if they felt that the government had made the UK an easy place to do business; over forty per cent said they found the process of operating a business in the UK overly bureaucratic and the taxation system extremely complex.
Alexander Morris, spokesperson for ‘Investors INC’, comments; “Our report is testament to the fact that most small business and company formation owners are conscious about the fragility of the UK’s economic recovery. When David Cameron’s coalition announces its emergency budget all eyes will be on their plans on how best to support the small business sector.”