smallbusiness.co.uk: Helping your business think big

The British Chambers of Commerce (BCC) claims almost one-third of firms expect turnover to improve in the coming months, although many are concerned by a range of problems.

According to the latest BCC Monthly Business Survey, 30 per cent of companies believe turnover will improve by up to one-quarter over the next three months, an increase on the 22 per cent reported in January.

However, the study shows that just over half of businesses are experiencing longer payment times from their customers, increasing the pressure on cash flow.

Furthermore, 69 per cent do not intend to recruit in the next three months, while one in ten are burdened by spending more than 20 hours a week complying with employment legislation.

David Frost, BCC director general, comments: 'These results show just how tough cash flow conditions are, with half of businesses hamstrung by increasingly late payments. The knock-on effect is that under a third of employers are planning to recruit over the next three months.'

Recent research from the Forum of Private Business discovered that confidence is increasing in small firms, although many are still affected by poor access to finance, the weak value of the pound and difficulty in gaining new business.