Local businesses facing a crisis of confidence and cash

A survey shows local businesses are lacking cash as well as confidence during the recession.
70% of local businesses operating in the Preston area lack the confidence in the banks and the government to be able to provide them the support they need during the next 12 months.
Almost a third of small businesses envisage difficulties on gaining new contracts and being able to expand during the difficult times ahead.
In research conducted by Rotherham Taylor, Chartered Accountants in Preston, Chorley, and London, small businesses expressed their views that bad debts and cash flow are causing them the most pain in their business.

Almost a quarter of respondents expressed concern that staffing issues and government red-tape are also hampering the day to day running of the business.
Based on feedback from respondents Rotherham Taylor has identified a list of the top 3 issues causing businesses the most pain in their business:
1. Cash flow
2. Government paperwork
3. Complexity of tax rules

Simon Cox FCCA, Director at Rotherham Taylor, says that small businesses are not yet feeling the support that is supposed to be forthcoming from the banks and the government.
“Small businesses play a vital role in the local and national economy and the government needs to ensure that cash flow availability does not hamper the growth and survival of many long standing viable businesses.
“Rotherham Taylor is currently working with clients to ensure that cash flow forecasts and budgets are in place, looking at sensible cost savings, as well as helping to identify potential growth areas in this challenging time.”

The survey result is based on responses from Rotherham Taylors client base of over 250 small business customers and was conducted in March 2009.