Government have today announced that they will continue to support lending for small businesses, as The Bank of England move to refocus the Funding for Lending scheme (FLS) on businesses not mortgage borrowers.
Making it through the recession is a test of strength – but there are no prizes just for surviving. Entrepreneurs need to get out of ‘survivor mode’ and start investing in growth if they are to avoid being left behind by less risk-adverse competitors.
Chancellor George Osborne said: “Small firms are the lifeblood of our economy. That’s why we’re reforming the banks, introducing the employment allowance and now focusing the Funding for Lending Scheme to support them.”
We know it’s hard to get back the momentum after a recession it’s a blow to your psyche. Survivor mode can become your normal mentality, which can make it harder to take risks and make investments, even when that is necessary.
A survey by the accountant and advisor Baker Tilly showed 45% of the 750 small and medium-sized enterprises polled were confident about their growth opportunities in the coming year, but only 16% were prepared to take on more debt to fund expansion. A fifth were planning to increase capital expenditure, and 23% to step up their spending on sales and marketing.
The recovery will leave people behind unless they are prepared to invest. You do have to make prudent decisions, but every now and then you have to throw caution to the wind. If you stop developing, stop coming up with new ideas, you have no hope.
So now that you have survived the recession the real work begins. Please contact us if you would like to discuss any ideas you may have.
See The Sunday Times for the full article: http://www.thesundaytimes.co.uk/sto/business/small_business/article1343825.ece