Self-employed confident about business prospects despite economic volatility

22 November 2007
Despite the current uncertainty in the global economy as a result of the credit crisis, 2.4 million self-employed people are remaining confident about how their businesses will fare over the next six months.

A survey carried out by specialist prime and adverse credit mortgage lender Kensington,

has found that the number of business owners who expect to see an increase in turnover over the next 12 months has fallen from 48 per cent in May to 42 per cent, but a majority of 66 per cent still say that they are confident about the forthcoming months.

Some 3.6 million people in Britain are self-employed, according to figures from Datamonitor, and the most optimistic of these are aged 35-44, with 74 per cent of those in this range expressing confidence about the prospects of their business.

While confidence has not been massively affected, the current financial climate has impacted on the way businesses are run, and recruitment is down as employers wait for the dust to settle. More than 61 per cent of business owners have no plans to take on any new staff in the next 12 months,

Ian Giles, Director of Marketing at Kensington Mortgages, said: “Of course, the challenges faced by the mortgage market are well documented but the Kensington Self-Employed Index shows that business owners are reacting pragmatically to the current economic environment by reassessing expectations for turnover and recruitment. But when circumstances change, successful businesses are able to react to those circumstances and come back stronger than ever before, so it’s not surprising that so many self-employed people remain confident about their business prospects for the future.

“A strong self-employed sector is good news for the country and great news for mortgage intermediaries, as these individuals will often have specialist circumstances and require sound financial advice to help match them with the right product from the right lender and ensure they can be as confident in their mortgage as they are in their business.”

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