According to the recent survey, the business confidence showed a decline over the second quarter of 2010. The recovery is delicate and much more effort is needed to encourage growth in private sector.
According to the FSB ‘Voice of Small Business Index’, shows only a net four percent of respondents believe that business prospects will improve in the third quarter of the year, down from 16 per cent in March.
As per the survey, around 67 percent of small firms are operating below capacity when compared to those in manufacturing sector which is growing much better than service sector firms
It also highlights that the UK economy is still on way from a full speed recovery. It has 64 percent of firms in the South-East which are likely to be working under below capacity that else where in the country.
Key findings from the quarterly report show:
- There is decrease in the confidence in the small businesses every month since March. 16 percent of small firms use to believe that there will be an increase in the business prospects which now is down to 4%.
- Though the ratio of businesses has decreased slightly from 70.5 percent to 66.6 percent, majority of small businesses are still operating below capacity, since the last report.
- Compared to manufacturing, firms which are operating below capacity are more in service sector. These are more likely to be based in the south-East.
- There is no expectation of improvement in growth of revenue as it is weak, in the next quarter.