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UK Small Business Confidence Rises For Second Semi-Annual Period
Added: (Mon Jul 17 2006)
Press Release: July,2006
RE: Results, UK Small Business Confidence Index
From: Europasurvey International
For: Business, Media
UK Small Business Confidence Rises For Second Semi-Annual Period
A rise of 4.1 points in business confidence was registered by small businesses
in a UK poll completed by Europasurvey International in July, 2006.The previous
UK Small Business Confidence Index appeared at the beginning of
March, 2006. It climbed 2.7 points from the benchmark established in 2005.
The UK Small Business Confidence Index is a detailed survey that
closely tracks business confidence among 100+ SBEs on a bi-annual basis.
In addition to business confidence, a topical question is asked in each bi-annual poll.
This poll’s question was: What, if any, strategies have you adopted to deal with a rise in
energy costs? Over 45% have begun, or plan to begin, sales and discounts in the
near future. A secondary strategy involved staff considerations, with 34% planning
to increase productivity--while either downsizing staff size, or not adding staff
as the autumn season approaches. Over 50% of SBEs now use Internet advertising.
The July, 2006 poll indicated that 14% of these had already raised their level
of internet advertising as one of three major business strategies adopted in the face
of an increase in energy costs.
For the first time, the number of micro-businesses, those who are self-employed
or with home offices, reached over 13% of those polled. Both micro-businesses
and family firms with 2-10 in staff exhibited the least inclination (under 20%) towards
adjusting to a hike in energy costs by instituting sales or online sales. Firms with
2-10 employees were also the least likely to integrate a reduction in staff size into
current business strategies (17%).
“ UK small business confidence remains healthy. It appears sales-driven,
with origins in the World Cup season. However, sales and discounts also
emerge as a primary strategy that may continue in the face of energy cost
increases. Given the possibility of further hikes in energy rates, the sustainability
of small business confidence may rest increasingly on measured shifts in
consumer confidence levels.”
Europasurvey International is an independent Internet journal devoted to a discussion
of UK, EU, and European affairs. Further information on the UK Small Business Index
is available at www.europasurvey.org, where the benchmark survey and its 2006 updates
may be freely downloaded. Contact: Dr. Ann H. L. Sontz, executive editor.
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