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Regus Survey Reveals SMEs ΓÇ£NeglectedΓÇ¥ by UK Government

Regus Survey Reveals SMEs ΓÇ£NeglectedΓÇ¥ by UK Government

Despite the UK Governments expectations of a prolonged economic recovery being driven by the private sector, a survey of SMEs by serviced office space provider Regus has revealed that 79% of business owners believe that their interests are neglected and overlooked by Government.

Focusing on the level of support offered by national government and institutions, the survey from Regus, who are largest provider of serviced office space worldwide, canvassed 5000 SME owners and entrepreneurs across 78 countries.

With SMEs estimated to contribute 50% of GDP and being responsible for around 60% of employment nationally, the negative response from this vital section of the UKΓÇÖs business community does little to support hopes of private sector led recovery.

One of the core issues shown in the Regus survey is that businesses are still struggling to secure credit from British Banks ΓÇô despite numerous promises from the bailed-out banking community and threats from the like of Vince Cable aimed at freeing up credit for the SME sector.

ΓÇ£In spite of their massive importance to the national economy, the SME segment struggles to get its voice heard.ΓÇ¥ explained Mark Dixon, Chief Executive of Regus.

ΓÇ£In the aftermath of the global downturn, this key sector for the economy has had difficulties securing capital and maintaining cash flow.ΓÇ¥

But with 72% of those surveyed in the UK (74% globally) declaring that they believe banks should be forced to lend more to entrepreneurial ventures and small businesses ΓÇô it would appear that the promises and threats have failed to filter down to the businesses most in need.

Cash flow and late payment issues were also high on the SME agenda, with 74% of those surveyed in the UK stating that they believed legal penalties should be introduced for the late payment of invoices, a point which Mark Dixon, commented upon:

ΓÇ£UK SMEs complain of late payments which frequently cause start-up businesses to fold within the first 18 months.ΓÇ¥

ΓÇ£The latest EU directive concerning late payments authorises businesses to charge 8% interest on overdue bills and Γé¼40 to cover expenses for late bills, but carries no enforcement measures. With the latest research by Atradius reporting that 42% of UK firms are being paid late, it is not surprising to find that fines on late payments would be welcomed by the UK SME communityΓÇ¥

Serviced office space provides a flexible option to businesses of all shapes and sizes, offering a cost effective, low risk alternative to conventional office space.

With thousands of serviced office locations available worldwide, including some of the WorldΓÇÖs most prestigious and iconic business addresses, serviced offices are an increasingly popular option for businesses seeking to inject flexibility and cost control into their business model.

As the largest independent broker of serviced office space, officebroker.com provides a free service to businesses seeking office space and allows them to compare, contrast and select from over 2,500 serviced office locations in the UK alone.

So If you believe that your business would benefit from a serviced office solution, simply visit www.officebroker.com to begin your search and let us help you find the perfect office for your business.

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Author: | December 8, 2010 | 0 Comments

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