The thing about statistics is, you can interpret them in different ways. It depends on the message you’d prefer to be writing if you weren’t constrained by the numbers.
For example, I recently saw that 4.8% of small to medium sized businesses expect to increase staff levels in the next quarter. The article in which I read that FSB statistic went on to suggest it “painted a brighter picture”…but of course, it also means that more than 95% of businesses won’t be hiring more staff, and it doesn’t mention how many are planning to reduce their headcount.
Growth isn’t something to be reading about in the papers, it’s something you get out and experience for yourself. The NACFB’s own annual survey results suggest SMEs are pessimistic about growth. 0.8% of brokers report that the businesses they have talked to recently expect to grow rapidly. Flip that around, and it appears that 99% of businesses are expecting something different. 43% don’t expect to grow at all in the next twelve months. That’s not the stuff economic recoveries are made of.
Yet our brokers seem bullish about their own business prospects. The difference in expectations between NACFB’s brokers and UK SMEs can perhaps be explained by the following reasoning: our brokers know the opportunities out there, but SMEs, by and large, aren’t and don’t.
The other thing I’d like to bring to your attention is a letter sent by the Office of Fair Trading to all Consumer Credit Licence holders, dated 15 July. The letter outlines some very important actions that our members – and all other licence holders too – will need to take. Here are the basics: licensees need to register with the FCA in September. Otherwise, they will risk operating illegally after 1 April 2014.
The OFT advises licence holders: “from September, you must register with the FCA for interim permission if you wish to continue the activities you are currently licensed for after 1 April 2014.”
Not a lot of happy news from me – but I hope to have something more cheerful for you next time!
