Small Business Survey September 2005

For release 21st September 2005

Small business confidence falters

The third Teneric Business Plans (http://www.teneric.co.uk) Small Business Confidence Survey shows a marked reduction in confidence for the UK economy from small business entrepreneurs.

The September 2005 survey shows that 74% of those questioned say they are optimistic for UK economic growth in the next 12 months (down from 83% in February 2005) although 78% believe their business will be better off this time next year (up from 76%). 26% say they are not optimist at all for the UK economy (up from 17% in February 2005)

Peter Hale Owner of Teneric Business Plans says "These results suggest that small business owners still have confidence in their own business skills but not the economy as a whole. They believe their businesses will be better off in a years time but their confidence in the UK economy shows a marked reduction from just 7 months ago.

Peter continues "In February, just 5% of small business owners said the UK economy was holding them back from growth -- now it is 14%. Certainly the recent turmoil in oil prices, stagnent high street growth and higher personal debt will have all contributed to the reduction in confidence for the economy.

However, there is positive news from the SME sector in that over 80% of firms follow a business plan and the vast majority have updated theirs within the last year. "Having a business plan has been proven time and again to generate more profits for companies than those without a plan so this is very encouraging and backs up SMEs suggesting that their businesses will continue to grow despite their reservations for the economy as a whole" continues Hale.

Ends.

Notes for Editors.

Teneric business plans website is at http://www.teneric.co.uk which has a comprehensive range of services and free advice to plan, start and grow a small business including a popular online advice forum. The online forum is located at http://www.teneric.co.uk/forums/

The survey was conducted in the second week of September 2005 with 708 participants.

The results of this survey, February 2005 and September 2004 survey can be found at:

• Sep 05 - http://www.teneric.co.uk/small-business-survey-sep05.html
• Feb 05 - http://www.teneric.co.uk/small-business-survey-feb05.html
• Sep 04 - http://www.teneric.co.uk/small-business-confidence-survey.html

Comparative Results

September 2005 full results

Survey Question/Answers Count Percent Graph 1. How optimistic are you for the UK economy over next 12 months? Very optimistic 100 15.36% Quite optimistic 379 58.22% Not very optimistic 156 23.96% Not at all optimistic 16 2.46% 2. Will your business be better or worse off in 12 months? Better 496 77.99% Worse 30 4.72% Same 110 17.30% 3. How important is a business plan for your business? Very important 429 67.88% Quite important 153 24.21% Not very important 47 7.44% Not at all important 3 0.47% 4. When did you last update your own business plan? Within the last 6 months 338 53.99% Within the last year 85 13.58% Over a year ago 61 9.74% I don't have a business plan 142 22.68% 5. Are you thinking of investing in your business in the next 12 months? Very likely 271 43.36% Quite likely 240 38.40% Not very likely 93 14.88% Not all all likely 21 3.36% 6. Where would you go to get financing to fund this investment? I don't need finance at the moment 125 20.13% My own/ company funds 171 27.54% The bank 132 21.26% Government grants/ loans 60 9.66% Equity from my house 23 3.70% Other lender 38 6.12% Don't know 72 11.59% 7. How would you go about securing this finance ? I don't need finance at the moment 205 33.33% Consult a website I know about 13 2.11% Consult a business advisor 152 24.72% Work with my bank 146 23.74% Consult with my mortgage company 11 1.79% Don't know 88 14.31% 9. What's holding you back from growth? Lack of funding 185 28.33% Government 36 5.51% Lack of investment 68 10.41% Economy 90 13.78% Lack of skills/ knowledge 113 17.30% Nothing 161 24.66%