Monday, October 11, 2010

SME Business Environment Barometer: BIS

The Department of Businesses Innovation and Skills released seventh SME Business Barometer in February of 2010 which showed SME Business conditions.

39 percent of the SME employers cite the state of the economy to be the main obstacle to success, 11 percent expect ahead of cash flow, and about 9 percent cite competition, obtaining finance and taxation. In December of 2009, getting finance was cited to be the main obstacle.


The main obstacle which is resulting in cashflow difficulties is fluctuating income. But as per the previous Barometers, high levels of working capital or of investment required by the SMEs are less probable to be mentioned as causes of cashflow difficulties.


Out of those which offer credit, 22 percent continue to have problems with late payment. 47 percent expect it to be a small problem and 30 percent have no problem. These statistics are similar to that of the previous year's Barometers. Late problem is compared as a major problem during the time of ASBS in 2007 or 2008.


About 23 percent of SME owners have done any work for a client from public sector in the past 6 months which is similar to the previous Barometers. About 74 percent of the SMEs claim that they were paid without any delay by their public sector clients. About 23 percent expressed that they were paid slowly by their public sector clients. There is an expectation of improvement in payment by public sector clients between December of 2009 and the latest Barometer.

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