Financing concerns damaging confidence

Overall confidence levels among entrepreneurs have risen by 2% since December, according to an Investec and Entrepreneurs’ Organisation (EO) report.

However, while just over half are confident the economy will improve this year, 27% are concerned about a double-dip recession.

In addition, despite the modest rise in entrepreneurs’ confidence, the majority still believe it will be difficult to secure funds in the near future.

The report also found that just 21% believe the UK is an attractive place to do business while 11% are planning an overseas move, and a further 13% are considering one.

“Although our findings show a general improvement in sentiment for the UK economy, we are still in a very fragile position and we need to ensure that everything we can do to support entrepreneurs is being done,” said Dr Sally Ernst, president of EO UK.

“Entrepreneurs have a key role to play in both wealth and job creation as well as in the country’s economic recovery.” 

Entrepreneurs may still be ambivalent on the economy as a whole, but confidence in individual business prospects are more promising, the report suggested.

Nine out of 10 entrepreneurs are expecting growth in turnover over the next year and a third are predicting growth of over 20%. Roughly the same proportions expect profits to grow too.

Access to funding remains a concern for business owners however. Some 57% are looking to securing capital to fund growth this year but a mere 6% think it will be easy to obtain.

© Crimson Business Ltd. 2010