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SME Confidence in Trouble, Could Cash Flow Be The Answer?

Through the examination of 25,000 tweets, the latest Daily Telegraph Business Tracker has revealed high levels of discontent amongst small businesses.

 

The Brexit deadline is getting closer, while that image of a healthy economy moves further away. Inflation has risen, skills shortages have proved resilient, as has late payment. The UK business community is acquiring more anxiety than turnover and the future is looking bleak. Social media has become an act of therapy for the business owner, with many using Twitter and Facebook to share their professional disappointments. A new Twitter analysis has revealed a sharp drop in small business confidence, with many fearing their future prospects.

This new data has been released by the insight company, Impact Social. The tracker analysed 31,000 Twitter posts made by small businesses and found a predominately pessimistic sentiment. Only 12 per cent contained a positive sentiment, while 10 per cent were negative. The remaining per cent was made up of sales promotions, highlighting the professional focus of contemporary social media.

According to Impact Social, there was a 68 per cent increase in pessimistic posts versus last month, compared with an ­increase of 35 per cent in optimistic ones. Negative business opinion is growing at a fast race, surpassing those who are in support of Brexit and the future landscape.

The research wasn’t all doom and gloom, with sector innovation taking a front seat. For example, a proportion of the tweets concerned London start-up, Phrasee. The tech start-up was able to raise $4 million (£3 million) in ­August due to artificial intelligence. With many British businesses still hesitant to accept innovation, platforms such as Twitter and LinkedIn can be a positive way of drawing focus.

With Brexit uncertainty causing the bulk of negative chatter, relief can only be acquired through the government’s talks with Brussels. In the meantime, business owners can utilise social media to boost the confidence of others, educating them on new services and innovative opportunity, reminding them that all is not lost.

 

Examining all tracker data from this year so far, the tide in overall small-business ­sentiment is turning. The buoyant mood of March, April and May has soured into rising discontent, and unless these firms receive greater clarity and reassurance about Brexit, negativity is set to ­become the dominant feeling in the final quarter of the year.

At the Credit Protection Association, many of our Members (ourselves included) have suffered a drop in confidence since the Brexit referendum. The ensuing uncertainty has severely injured the British business community, paired with the permanent torment from late payment. CPA has eased the discomfort through focussing on our Members’ cash flow, strengthening and protecting their financial future.

The services at CPA are a collaborative effort. The combination of cash flow management, debt recovery and credit montitoring services, ensure financial confidence is acheived without sacrificing longivity.

 

Please call us on 0330 053 9263 to discuss how CPA can help your cashflow.
Alternatively, either email us or use our contact form.

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The Latest Insolvencies to 27 Sep 2018

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