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UK entrepreneurs and smaller business owners are starting to feel the squeeze of tighter credit, though the impact on economic activity still looks limited according to a statement issued by the Confederation of British Industry (CBI) last Sunday.
UK entrepreneurs and smaller business owners are starting to feel the squeeze of tighter credit, though the impact on economic activity still looks limited according to a statement issued by the Confederation of British Industry (CBI) last Sunday.
According to CBI chief economic adviser Ian McCafferty, “the credit crunch has not caused funding to small firms to dry up… however a minority are feeling the pinch and have started to scale back business plans whilst more expect the situation to worsen.”
12 per cent of firms surveyed had already experienced deterioration in the availability of capital; 22 per cent expected some constraint over the next three months; and 31 per cent over the next 6 to 12 months.
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