Latest CTU Update - April 2012

2 year limit for SMEs on SEIS could be a disaster

My first thought having looked at today's budget is that the 2 year limit on SEIS (http://www.seis.co.uk/) could leave any SME older than 2 years old (i.e. most of them) dead in the water?

a) it exludes most SME but mainly b) it will mean that the value of companies older than 2 years old will fall won't it?

Still in recession or turning in Jan?

So things are worse than clever people thought (BBC). And the recent figures from my business support this as I wrote earlier about worrying signs. However a BT survey published this week says that 75% of SMEs think things are going to turn up in Jan next year! If I was writing this earlier in the week I might have taken some comfort from the BT report findings. But today, as Britain is confirmed into the worst recession since records began in 1955, I find it hard to be optimistic. October is always a low month for my biz but if this month finishes as it started I have to go back to Oct 07 to find worse monthly figures. At this rate all the growth we've managed to maintain in 2009 will be all but wiped out and whether this year finishes up or down on 2008 will be entirely dependant on the Christmas period. Like us, I'm sure that the SMEs participating in the BT survey have been investing in both technology and staff in the hope of being well placed for the expected recovery. And I quite agree with Digby Jones when he says that embedding technology in the heart of a business is vital to both future growth and current survival but unlike the BT SMEs, my worry is increasing not decreasing. We're lucky to have zero debt, a healthy market position, apparently weakening competition, good technology and great staff. But if October's figures are the start of a second dip, our recent investment could come to look rash. I hope I'm wrong.

The Bank of Essex

This could be interesting.  A local council setting up it's own bank to help SMEs.  I can't help but think they'll find the hoops they have to jump through, in order to actually start lending, too difficult in the end.  But credit where it's due to Essex Council for being prepared to try.  And allocating money where it's mouth is.