Political instability and small businesses

Posted: Tuesday, 11 May 2010 @ 16:17
Political instability and small businesses

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A poll by the Federation of Small Businesses (FSB) reveals that 54% of small businesses are planning not to expand following the election result.

I am not surprised. The simple fact is, that for a small business to expand, it needs confidence that customers will be there to buy its products in the future and have the financial means to do so.

The poll also revealed that 52% want action taken by government to reduce the budget deficit sooner rather than later, 44% want to see the banking system reformed and 38% want the government to take steps to steady the financial markets.

I believe that what is necessary is a firm plan to reduce the deficit (whether immediately or at some specific point in the not-too-distant future) and a government with sufficient stability to see it through. The mathematics of the election indicate that only a Conservative/LibDem coalition will achieve this. A minority government, whether it be a Labour/LibDem coalition or a Conservative one, will only increase the likelihood of further political instability and another election within a year. This will mean that many small businesses will simply take a wait-and-see attitude to growth.

Here’s hoping that politicians stop playing politics and start listening to what small business really needs.

Gary Cousins
Business Solicitor and worried voter

Blog by Gary Cousins
Gary has been providing legal advice to shareholders, directors and business owners for over 25 years. Specialising in dispute resolution Gary is based in Birmingham with clients throughout the UK and overseas. View profile
Call Gary on +44 (0)121 778 3212 or by email
This blog is not intended to constitute legal advice, nor is it intended to be a complete and authoritative statement of the law, and what we say might be out of date by the time you read it. You should always seek legal advice to confirm whether or how any information in this article applies to your particular situation. We offer a free telephone consultation to discuss your particular circumstances.

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