SMEs 'optimistic' for 2008

More than one in three British small and medium-sized enterprises (SMEs) feel positive about the coming year, according to new research.

A study by Alliance & Leicester found that some 35 per cent of the SME population in the UK are feeling optimistic about their future, with 46 per cent claiming the outlook for 2008 was the same as this year.

These results are a welcome positive sign after a year of economic turbulence, with both consumers and businesses of all sizes struggling with the credit crunch.

Nevertheless, just under one in six SMEs felt that 2008 would be a bad year and had a negative outlook.

Steve Jennings, director of business banking at Alliance & Leicester Commercial Bank, said: "Our research shows that the British entrepreneurial spirit is alive and kicking.

"Entrepreneurs are key to the continued vitality of the UK economy - with small businesses accounting for more than 99 per cent of the country's business population - so it's positive news that the economic unrest of the last few months hasn't put small businesses off looking to the future in a positive frame of mind."

However, a report by the Rural Communities Commission has found that there are increasingly large areas of rural England with very poor telecommunications coverage, which makes SMEs and other businesses much weaker.

Speaking to the Times, Stuart Burgess, chairman of the Rural Communities Commission and the government's Rural Advocate, said: "Broadband is still not accessible and, even where it is, the quality is questionable.

"For the modern rural economy to develop and grow you need good internet access. We also need to improve the mobile phone coverage."