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New British businesses anxious about prospect of recession

Aug 29 2001

A survey of 300 British start-ups has revealed that their biggest concern for the next three years is a downturn in the economy.

The survey - called "DHL Hopes & Dreams Report 2001" - is the fifth such report commissioned by DHL International (UK) Limited. It looks at the "motivations, inspirations, hopes and dreams" of businesses in their infancy, to draw a picture of 2001's entrepreneurs.

Over a third see a downturn in the economy as their main concern for the next three years. This fear has risen over the past year - last year a quarter of new businesses specified the economy as their greatest concern; this year it is 35%.

Fear of personal illness ranked second, at 21%, and 17% viewed an increase in government red tape as an anxiety. 9% are worried about a shortage of skilled labour for the next three years and 7% are concerned about a rise in interest rates.

A survey of SMEs by the Forum of Private Business released in March 2001, showed a "strong picture of stability emerging". However, Rick Hopkins, spokesperson for the Forum of Private Business advised that if an economic downturn does occur, "for start-ups, tight financial control is probably the key. Shed any unnecessary overheads. Positive thinking and planning ahead, where possible, before the event happens," are the measures to take.

When questioned on what the new government could do to help small businesses the majority (47%) of the new enterprises surveyed responded with the answer: more small business tax relief. However, this figure is down from the 1997 response of 94%. 26% of start-ups want small business taxations simplified. Grants and incentives for businesses and a reduction in red tape came a joint fourth, at 5%.

Only 3% wanted the government to help through support and advice.

To obtain a copy of the report e-mail the RED consultancy at alexw@redconsultancy.com .

With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com .

(29/8/01)

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