SMEs growth 'must be supported'

by Christopher Evans

Small to medium-sized enterprises (SMEs) need to be supported as they attempt to recover from the recession.

That is the view of the Forum for Private Businesses, which said that business confidence is still "quite depressed".

Phil McCabe, a spokesman for the group, explained that growth finance is crucial for owners of limited companies, particularly after they have come out of a period of economic downturn.

"[This is] in order to allow them to take on additional staff and invest in machinery and equipment, etc. in order to make the most of renewed opportunities that do happen when the economy begins to recover," he added.

"Obviously, we are still seeing quite severe restrictions in credit from banks and when funding is available, it is often far too expensive to be a viable option."

Last week, a report from business recovery specialists R3 revealed that almost half of companies polled are experiencing drops in profits.

Reductions in sales volumes were reported by 44 per cent of firms surveyed.


Published on: December 1, 2010

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