Three fifths of UK adults trust small businesses rather than large firms to help get the economy going, finds research.

Three fifths of UK adults trust small businesses rather than large firms to help get the economy going, finds research. 

Furthermore, the majority of people questioned in a study by survey company Usurv are in favour of government plans to set up a state-backed small business bank, with 73 per cent believing the economy would get a bigger boost by making money available to small businesses rather than financing larger companies.

The majority of the sample (72 per cent) would prefer to work for a small business rather than a big firm, citing greater job satisfaction and the ability to play a bigger role in the business as the chief reasons. Only 28 per cent would choose to work for a large company. 


The top reasons why people prefer to work for a small business include greater job satisfaction (75 per cent), playing a bigger role in the business (46 per cent), and better work/life balance (40 per cent).

Greater flexibility (34 per cent) and more freedom/fewer rules (31 per cent) are also popular reasons.

Guy Potter, director at Usurv says, 'Our poll seems to indicate that people are overwhelmingly in favour of small businesses, and are firmly behind government plans for a state bank to provide them with loans.

'It looks like we've moved from being a nation of shopkeepers to a nation of small businesses.'

Anil Stocker, head of policy for the Next Generation Finance Consortium, which comprises a group of innovative finance providers, adds that the role of the Business Bank should be to provide support to both challenger banks and alternative finance institutions.  'We need to see more of this, rather than government schemes loaning money to high street banks to stimulate business lending.

'By making small businesses aware of the funding options out there like credit unions and invoice financiers, the lending market will become more competitive and better at driving business growth.'

See also: SMEs urged to bid for public sector contracts