Tenon: cautious optimism returns to East Midlands small firms

OWNERS of small businesses in the East Midlands believe the economy is showing signs of recovery.

Two out of five firms in the region expressed confidence in the prospects for their business over the next three months, say accountants Tenon.

The Tenon Entrepreneur Forum, which questioned more than 300 business owners throughout the UK at the end of July 2009, saw a sharp increase in the number who felt confident about opportunities compared with the previous quarter.

Alistair Wesson, regional managing director of Tenon for the Midlands, said: "A wave of cautious optimism is spreading through the entrepreneurial community.

"Small businesses have worked hard to manage their costs in this difficult climate and have shown remarkable resilience in the face of such challenges, adapting their business models by increasing their capital investments, research and development, and the use of outsourcing services

"There is still a long way to go. Disappointment with the effectiveness of government initiatives to help small businesses to date means vigilance is the watch word for all entrepreneurs over the coming months.

"Cost control and tight financial planning remain important in ensuring survival and positioning firms to benefit from the opportunities arising from the recovery.

"This confidence is reassuring, but entrepreneurs must recognise this is the most difficult economic climate they have faced in the last 75 years."