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November 02, 2012

GDP rise boosts small business confidence

A survey undertaken a week after the 1% rise in GDP has revealed that small business confidence is rising and more owners are planning to invest in their businesses.

The survey of 2,000 small businesses, commissioned by Freelancer.co.uk, has found that 58% are now willing to invest in growth. Many are beginning to see sales pick up and a small return in consumer confidence.

Yet the research shows that 61% of the businesses were refused a loan from a bank and will be using their own money to invest. 43% will use their savings, while 19% will borrow money from friends and family.

The survey also found that businesses are wary about taking on new staff. 34% said they would now rather spend money on marketing, while 43% said they would now invest in improving their ability to trade online.

According to the research, 48% of small business owners said they would be investing in hiring freelancers to undertake the work, saying that they only want to pay for services as they needed them.

The results are backed up by Freelancer.co.uk's own growth figures, which show that UK small business spending on freelance staff has increased by 134% in the past few months.

"This survey shows that small businesses believe that growth is now sustainable," said Matt Barrie, CEO of Freelancer.co.uk. "Small businesses are not only confident about the future, but they're already seeing signs that consumers are confident too."