Confidence falls for business start-ups

Date: 28th November 2008

Oncoming recession is having an adverse affect on business start-ups, with confidence beginning to slide, a study had shown.

Research by the think tank Tenon Forum has found that half of business start-ups have suffered from a fall in demand, while a quarter have had to make redundancies.

Despite this, almost a third of small firms were bullish about the economic downturn, stating that it will provide more business opportunities.

Carl Jackson, a spokesman for Tenon, said: "Britain's entrepreneurs are at the frontline of the economy, and as the effects of the recession deepen, small businesses are the first to feel the pinch."

He added that the fact entrepreneurs were still willing to take calculated risks and benefit from the rewards during such troubled economic times was encouraging.

From Monday (December 1st), the rate of VAT will be reduced from 17.5 per cent to 15 per cent for a 13-month period.