As the coalition government announces its plans to cut public spending by six billion pounds, by significantly reducing the money it spends on the Civil Service, it seems that the small business and company formation sector aren’t going to follow suit.
Indeed if recent figures, which clearly state that investment in small business has risen over the first quarter of 2010, continue to increase all sectors of the economy will receive a welcome boost from the increase in SME investment.
Despite difficult market conditions, disappointing Christmas sales and the challenge posed by January’s ‘Big Freeze’ , recent figures from the Office of National Statistics reveal that investment in the small business and company formation sector actually increased by just over five per cent throughout the first three months of the year.
Jonathan Parker, head of economic enterprise at business consultancy ‘FDP’, comments: “The fact that investment rose during the first three months of 2010 which was an overwhelmingly difficult time for most companies is testament to the steely determination of the UK’s entrepreneurs. However, while this growth is positive it needs to be sustained if growth is to be stimulated and a consistent economic recovery is to be achieved.”