The latest survey from the Small Firms Association shows a good improvement in sentiment of small business owner-managers, but many remain under serious pressure.
In its Spring business sentiment survey, the SFA says that 58% of respondents rate the overall business environment as 'poor' or 'very poor'. But this compares with 70% of small firms in November and 75% of firms the same time last year.
Business who rated the overall business environment here currently as either 'very good' or 'good' doubled to 12% from 6% in November 2009.
Today's survey also reveals that 47% of respondents expect the overall business environment in the next three months to be either 'poor' or 'very poor'. But the SFA points out that this a significant improvement on the figure of 74% who thought the same this time last year.
17% of those who took part in the survey expect the overall business environment in three months time to be either very good or good - a major improvement on the 7% reported in November.
Access to credit, including both working capital and investment finance, continues to be problematic, the survey reveals. The cost of working capital has increased for 15% of companies in the last three months, while the cost of investment finance has increased by 8%.
20% of firms say they have seen the availability of working capital decrease in the last quarter, with 13% saying that investment finance availability has decreased.
'Entrepreneurial businesses that are well structured and well managed will see opportunity in uncertainty, however they need assistance from Government to provide support and create an environment that will assist them in the creation of jobs and help them become more productive, innovative and in control of their costs,' commented SFA director Patricia Callan.
