Upbeat mood among small businesses

Date: 26th August 2009

Barclays Local Business has released a report showing that 49 per cent of the UK's smaller firms are planning to expand their operations over the next year.

Another third predicted that they would either "consolidate" or "stay the same", despite the pressures of the economic downturn.

UK GDP declined by 0.8 per cent over the last quarter and is around six per cent down on its level at the beginning of last year.

Unemployment and business insolvencies have also been pushed upwards by the credit crunch and recession.

However, many of the sole traders and other business people participating in the survey believe that they are poised to benefit from a future upturn in the economy.

Steve Cooper, managing director of Barclays Local Business, commented: "Companies with growth plans could be taking advantage of a completely different competitive landscape, where key competitors are missing or have downsized.

"While many of these businesses will not need finance, Barclays welcomes any approaches from commercially viable companies with an eye to borrowing."

Elsewhere on the survey, retail companies were revealed to be the most optimistic, with 54 per cent of the sector planning to grow their business over the next 12 months.

However, just 46 per cent of firms in the trade sector feel the same way.