Small businesses show “alarming” low confidence in finances

More than a third of small business owners cite cash flow as the primary cause for concern to their business, according to recent research.

The latest study by not-for-profit employer support organisation, the Forum of Private Business, indicates rising fears amongst small business owners about their finances, including concerns about banks calling in loans or reducing overdrafts.

According to the research, 38% of businesses said cash flow was their main worry, up from 33% last year. Almost a quarter (23%) were most concerned about access to finance, while19% cited the lack of options for finance available to them.

Chief executive of the Forum, Phil Orford, has labelled the results of the research “alarming”, saying they suggest a deterioration in SME confidence in their finances.

“We suspect this is as a result of the banks’ ongoing failure to deliver affordable finance to small firms,” he said. “This research not only shows business fearful about their own financial state, but it shows dissatisfaction with the banks.”