Daily Research News Online no. 1102 - SMEs Feel Undervalued by Banks and the Government

SMEs Feel Undervalued by Banks and the Government

September 4 2001

Almost three quarters (74%) of SMEs in England and Wales feel that their economic contribution is undervalued by the government, according to the findings of a new survey from Taylor Nelson Sofres.

In addition, three out of ten SMEs think that their banks are not doing enough to meet their specific business needs and almost one-third (33%) of businesses questioned are "not confident" that their main bank would give them an "adequate level of support" in the event of an economic slowdown.

The survey, which considered some of the key issues facing SMEs, also asked which factors the sector regarded as the most important in running a successful business. In first place was "the ability to plan and foresee problems before they arise" (47%), followed by a "natural business ability" (36%) and a "good general education" (11%). "Business and/or management qualifications" were mentioned by just four per cent of respondents.

Other key findings include;

Almost four out of ten SMEs with an overdraft facility (38%), plan to reduce it over the next twelve months, whilst almost half (48%) predict that their overdraft will stay the same in the next year.
More than eight out of ten SMEs (81%) predict that their businesses will be performing better over the next five years.

According to Julie Cooper, Senior Research Executive of Taylor Nelson Sofres Finance Line, "A significant minority of SMEs are clearly concerned about banks and the level of support they can expect to receive if there is an economic slowdown. Despite this however, many SMEs remain cautiously optimistic about the future."

The findings are based on 1,000 interviews conducted with small businesses in England and Wales between 25 June and 10 July 2001.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.