South: More than two thirds of SME finance chiefs would increase headcount, says Robert Half

Despite the Government’s intervention to boost lending with initiatives such as the Funding for Lending Scheme, new research¹ from leading recruitment specialist Robert Half UK, shows that more than two thirds (67%) of CFOs (chief financial officers) and FDs (finance directors) in SMEs would increase headcount if they had access to lending. 

Furthermore, 86% believe that increased lending to SMEs will help ease unemployment.

While the latest ONS figures² indicate that employment rose by 69,000 in the three months to June, unchanged from January to March at 7.8%, finance leaders indicate that more can be done. In fact, the majority (96%) of CFOs and FDs called on lending institutions to do more to increase finance to small and medium-sized businesses, and help support growth.

Indeed, since the start of the recession, four in 10 (38%) finance leaders at UK SMEs have been turned down for lending, despite the potential benefit this would have on employment.

Midlands-based firms appear to be worst affected by the lack of lending. According to the research, 43% of finance leaders have been turned down for extra lending since the start of the recession. This is closely followed by those SMEs based in London and the South East (40%).

Seven in 10 (70%) SMEs based in the South West and Wales would be most likely to increase headcount, followed by the Midlands (68%).

Phil Sheridan, Robert Half managing director, said: “Employment has been gaining positive momentum over the past few months, demonstrating greater confidence from UK businesses to invest in the people necessary to drive growth strategies. However, what our research indicates is that employment could be further bolstered should SMEs have the financial resource necessary to expand their teams.”

1 Robert Half surveyed 200 CFOs and FDs across UK companies in June/July 2013

2 http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/august-2013/index.html