Small Businesses Conserving Cash
08/07/2008
New research by Bank of Scotland Business Banking shows that the vast majority of small business owners in the North West are holding back from making immediate decisions about investment in the business.
Cash conservation is apparently the primary concern of 81 per cent of those surveyed by the Bank, with economic uncertainly being cited as the cause.
The research shows that, over the next year, 23 per cent of small business owners intend to build up a cash reserve to see them through the tough economic climate, and protect them in the event the economy worsens.
A further 31 per cent of respondents to the survey plan to put money aside for future investment in the business, whereas 34 per cent intend to save in order to earn interest on their money.
Even though the majority of respondents expressed an intention to reduce their expenditure, 27 per cent of small business owners are still putting more money back into their businesses than in the bank, whereas 39 per cent said they were not able either to save or to invest.
20 per cent of small business owners said they were saving and investing in equal measure, whereas just 12 per cent said they were able to save more each month than they were investing back into the business.
Cash conservation is apparently the primary concern of 81 per cent of those surveyed by the Bank, with economic uncertainly being cited as the cause.
The research shows that, over the next year, 23 per cent of small business owners intend to build up a cash reserve to see them through the tough economic climate, and protect them in the event the economy worsens.
A further 31 per cent of respondents to the survey plan to put money aside for future investment in the business, whereas 34 per cent intend to save in order to earn interest on their money.
Even though the majority of respondents expressed an intention to reduce their expenditure, 27 per cent of small business owners are still putting more money back into their businesses than in the bank, whereas 39 per cent said they were not able either to save or to invest.
20 per cent of small business owners said they were saving and investing in equal measure, whereas just 12 per cent said they were able to save more each month than they were investing back into the business.
