Partner Article

N.E. SMEs still remain cautious

Owner managed businesses on the North East are becoming more optimistic about the future, but still remain cautious, according to a new survey.

276 owners and senior executives in private businesses were surveyed, and while only 30 percent of respondents felt positive about the future, this is an increase on 2009 figures, when only 20 percent were anticipating increased future sales.

Jim Meakin, office-managing partner at Baker Tilly in Newcastle, says: “We are greatly encouraged that our survey indicates a significant increase in optimism against the levels of two years ago.

“This could be indicative of greater preparedness in dealing with the current economic challenges which, particularly in our region, remain significant.”

However, downturn appears to be the biggest threat to business, with 32 percent of respondents indicating it is a major worry for many/ other threats include public sector cuts, increased inflation and rising fuel costs

Jim adds: “This information suggests that most businesses are less confident about the wider regional business environment than they are the immediate performance of their own business.

Despite some indications of returning confidence this is a clear indicator that the region faces a continued period of challenge to rebuild confidence.“

This was posted in Bdaily's Members' News section by Ruth Mitchell .