Business Owners Not Getting Desired Government Support
According to a poll conducted by YouGov for Tenon’s Business Barometer in which more than 390 business owners took part, it was found that the government endeavors are not up to the expectations of enterprneurs.40% entrepreneurs are of the opinion that government is doing very little to boost business.
The expectations were optimistic just two weeks after the election of the coalition government. At that time, 52% business owners believed that the government would do enough to support business in contrast to only 18% against this optimism. But now, 40% feel that the government is not doing up to their expectations.
60% entrepreneurs want a reduction in red tapism and almost 48% would appreciate a reversal of path by the government on VAT. They want the rate to be 17.5%.
42% business owners want national Insurance to be reduced and more than 35% would want that the government to increase incentives on the availability of funding of new resources. The poll predicted an increase in the quantum of businesses expecting an increase in demand for goods and services in the next quarter; this may be 34%, 3% higher than the last quarter.
63% entrepreneurs do not plan to change spending while 16% plans to increase spending and 16% intends to decrease cost in the next quarter. Public relation and marketing may see an increase in 23% spending whereas there may be 25% cut backs in capital investment.
The worst is that almost 75% business owners indicated pay freeze for employees and 15% foresee a reduction in payment of bonus.
The chief executive of RSM Tenon, Andy Raynor feel that early sign of optimism is still there but are under the cloud for s short period as there is a threat of double dip recession over the country.