Small businesses struggle says Constructaquote

A survey by business insurance comparison website, Constructaquote.com, revealed that 78 per cent of small business owners claimed not to have seen any increase in business.

More significantly, 29 per cent of those small businesses surveyed claimed that this was due to a lack of support from the banks.

A further 20 per cent reported that a drop in consumer confidence was another significant factor in the stagnation of their business.

Lyndon Wood, chief executive officer at Constructaquote.com, commented: "This survey clearly indicates that the British banks are still letting down small business owners, despite pressure from the Government and small business groups".

"Clearly more needs to be done to help small businesses flourish and succeed, otherwise there is a very real fear that our already fragile recovery is likely to crumble".

When asked if they were confident that their business is likely to grow over the next 12-18 months, 41 per cent of respondents were unsure and 22 per cent were not optimistic about the future.

Mr Wood continued: "This survey is a sure indicator that confidence amongst small business owners is still at a low and the coalition Government is faced with a major task to improve public opinion over the next year or so".

It is thought that with the Government restricting public spending, redundancies and an impending VAT rise from January next year, both consumer and business confidence is likely to drop further still.

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