Small Business Owners - Is The Spring In Their Step Returning?

Just as spring is trying to show itself after, what feels like, a long a hard winter so it seems that a little bit of optimism is returning to small business owners.

The Federation of Small Businesses first financial report of 2013 has found that the confidence level of small businesses has risen dramatically since the fourth quarter of last year. With small businesses expecting to "marginally increase their staffing levels over the coming three months".

Although undoubtedly good news, this optimism is tempered with caution as they also found fewer businesses expecting to see growth over the coming twelve months. This lack of confidence is driven by small business owners' concerns over the current state of the domestic economy and continuing difficulties in accessing finance. Both are major barriers to future growth.

But as April approaches, the Chancellor has the perfect opportunity to alleviate those fears. With the spring budget less than a week away now is his opportunity to help small business owners get the British economy moving again.

If the Chancellor is still unsure of how to help, there's no shortage of ideas out in the business community. The FSA and British Chamber of Commerce are calling for the implementation of the proposed Business Bank. They hope this will get finance flowing again by stimulating increased competition in the banking sector. Especially if the new bank takes on the micro-funding, long term and higher risk loan applications and advice that existing lenders refuse to deal with.

In addition the FSA is calling for an easing of the burden of rates. This should resonate particularly strongly with many small businesses who now face paying more in rates than they do in rent. Scrapping this year's planned rate rise is a popular "wish list" item amongst organisations representing business ??? with both the CBI, Chamber of Commerce and British Retail Consortium echoing the FSB's calls.

But of all the announcements in his budget statement, the most eagerly awaited by many of you will undoubtedly be about September's planned 3p increase in fuel duty. Let's hope the recent speculation that the Chancellor will "scrap" it are true as it's another rise that the commercial sector could do without. In recent months, as the pound continues to fall against the dollar and crude prices continue to rise, we're approaching an all-time high price for fuel. This increase would come at a time when the combined Fuel Duty and VAT on a litre of fuel is already in excess of ??0.80. And any further increases would surely extinguish any hope of a recovery in the near future.

So we'll be watching the budget, hoping for good news and hoping the confidence felt by small businesses isn't misplaced