smallbusiness.co.uk: Helping your business think big

Small and medium-sized enterprises (SMEs) remain cautious over claims that there are 'green shoots' of economic recovery.

The latest Nottingham University Business School Barometer shows that 44 per cent of small firms opted to reserve judgement on whether the business climate was improving and 34 per cent have seen growth remain static since January.

In addition, poor access to finance is still viewed as being the major obstacle to recovery, as two-thirds of companies say that credit conditions have not improved over the last three months, with 24 per cent saying they have worsened. Only eight per cent said access has become easier.

One respondent comments: 'Banks are being particularly difficult to deal with and not helping the situation.'

The barometer also shows that some small firms' cash flow is being squeezed by falling revenues, with 27 per cent feeling compelled to cut prices to maintain their customer base.

However, eight per cent say their costs are being eased by falling prices from suppliers.

In a recent Federation of Small Businesses survey, 23 per cent of respondents said they have seen an increase in trade since the start of the year, an improvement on the 16 per cent in February.