Small firms positive over 2008 prospects - commercial mortgages

27 December 2007

The majority of small and medium sized businesses (SMEs) in the UK remain optimistic over their fortunes for the year ahead, according to research from Alliance & Leicester.

The firm has said that 46 per cent of such firms, many of whom will have commercial mortgages, feel that their prospects for 2008 will mirror those seen in 2007, while 35 per cent believed that things would improve over the next 12 months.

Just one in 16 believe the the outlook is negative, the study added, with a quarter of respondents planning to sell in new sectors next year.

"Our research shows that the British entrepreneurial spirit is alive and kicking," confirmed Alliance & Leicester Commercial Bank director of business banking Steve Jennings.

"Entrepreneurs are key to the continued vitality of the UK economy, with small businesses accounting for more than 99 per cent of the country’s business population so it''s positive news that the economic unrest of the last few months hasn’t put small businesses off looking to the future in a positive frame of mind," Mr Jennings added.

Earlier this month Alliance & Leicester suggested that many companies could be underestimating the costs associated with the Christmas period.