Survey shows SMEs want more government help

Small firms want banks and the government to do more to support them during 2012, according to a new survey reporting in the Manchester Evening News.

Employment law specialist Citation, based in Wilmslow, surveyed its 6,500 customers to uncover what SMEs thought would be their biggest challenges of next year.

While 80 per cent of respondents said they were optimistic about opportunities in the next 12 months, 79 per cent said the government could do more to help.

Citation chief executive Lindsay Hill said: “It is not all doom and gloom going into 2012 and it was encouraging to see many of those surveyed feeling optimistic about opportunities in 2012.

“Government funding initiatives for SMEs are due to come in during the year, which should help some grow their business.

“Moreover, those SMEs which have adjusted through tough times and survived with leaner budgets will only be stronger going in to 2012.”

The lack of support from banks was another key issue raised by respondents, including a lack of willingness to lend or extend loan repayment periods and overdraft facilities.

Mr Hill said: “The banks quite simply need to understand SME businesses better and employ advisers who can adopt a common sense approach to lending, rather than a one-size-fits-all set of rules.”

The Citation survey comes after a report by insurance giant RSA found 12 per cent of SMEs had experienced difficulties securing finance in the last year, rising to 15 per cent in the manufacturing sector.

Firms said they were increasingly looking to equity investors to fill the void left by traditional lenders.

 

Citation Plc try to get the winter Health & Safety message across

Health and Safety and Employment Law specialists Citation have added their voice to an article in the Manchester Evening News aimed at making sure businesses are better prepared for icy conditions.

A cold snap like that seen last winter could force thousands of firms in the north west out of business, according to new research.

A study by insolvency trade body R3 said that a bout of severe weather would force one in eight companies across the north to seek access to additional funding, while one in 25 said they could be tipped into insolvency.

Just over half said their profits would be hit, while 58 per cent said productivity would be hit by staff unable to get to work.

Firms with the biggest concerns included those in the distribution and retail sectors.

Jeremy Oddie, north west regional chairman of R3, said: “A cold spell, coming on top of the quarter day at the end of December when rent is due, could put many out of business.”

Meanwhile financial services business Close Brothers' quarterly SME survey revealed that a third of north west businesses have no contingency plan in place in case of cold weather disruption.

Regional head Ian Steward said: “Prevention really is better that cure and I would urge SME owners who aren't already prepared to act now, checking the premises are winter-proof, insurance is up-to-date and flexible working plans are in place in case staff can't make it to work.”

Wilmslow-based health and safety specialist Citation has highlighted the importance of simple measures such gritting and sealing off hazardous areas to prevent slips in snow and ice.

Chief executive Lindsay Hill added: “Whilst focusing on the outdoors, employers often forget the impact winter weather can have on the indoor working environment.

“It is important for employers to clean up wet corridors and reception areas, particularly near entrances.”