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Region’s economy not out of danger

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East of England businesses are more optimistic about the economy than the UK average but many small businesses in the region still face major hurdles, says insolvency trade body R3.

Only 22 per cent of businesses in the region oppose George Osborne’s views that the economy has moved ‘from rescue to recovery’, compared to 49 per cent nationally, according to R3’s business distress index.

But R3’s eastern region Chairman Shay Lettice, a partner at Cambridge accountancy firm Peters Elworthy & Moore, said: “There has been plenty of positive economic news locally, but it’s important that we don’t forget that a lot of businesses, particularly those with a small turnover, still have significant hurdles to overcome. Now isn’t the time for complacency.

“One of the most dangerous times for businesses is immediately after a recession, when they face a lack of investment and the stress of meeting increased demand. While it might feel like economic recovery is taking place, there needs to be a strong element of caution.”

Further statistics from R3’s Business Distress Index find the East of England business community in increasingly robust shape.

R3 figures show79% of eastern region businesses report no signs of distress – such as a fall in profits, market share or sales volume, up from 48% in March 2013.

At the same time, 55% of businesses in the region are reporting at least one sign of growth, which includes investment in new equipment, business expansion, increased sales, growing market share and larger profits.

R3’s report also reveals that the economic picture is rosier for larger businesses than for small. Nationally, almost three quarters (70%) of large businesses reported at least one sign of growth, yet only half (51%) of small businesses were in the same position.

Last Updated ( Wednesday, 16 October 2013 16:07 )