Majority of Small Businesses Back Coalition Government

More than 60% of small firms believe a coalition government is better for businesses than having a single party in power.

In an Orange survey of 1,300 small business owners 14 weeks after the general election, 62% said they preferred having a coalition government, and almost one in three said a multi-party government was positive for growing firms.

One in five (21%) said they expected the political partnership to result in a reduction in paper work and ten% expected increased profit margins, due to a stronger economy and lower taxes, the report claimed.

Prior to the election, business groups expressed concern that a coalition government would create uncertainty. The British Chambers of Commerce (BCC) Monthly Business Survey in April 2010 found that 65% of businesses were either “concerned” or “very concerned” about the potential impact of a hung parliament.

BCC spokesman, Sam Turvey, said the change in attitude was likely due to the coalition’s action on public finances.

“Business owners were worried that having a coalition government would lead to horse trading and power struggles instead of focusing on the big issues facing the economy,” he said.

“Now they’ve announced the Budget measures and public spending cuts, and people are reassured by that. The Conservatives and the Liberal Democrats have worked well together so far.”

“If a single-party government had taken the same measures, they would say they prefer a single-party government. However, if they genuinely see the coalition structure as beneficial, it’s probably because they feel there is more of a compromise and more views are taken into account.”

Emma Jones, founder of home business community Enterprise Nation said a coalition government was good for small firms because it could accommodate a range of political views.

“A coalition tends to come up with policies that suit most people, rather than some people. But I also agree that respondents have based their views on this particular group of politicians, who have made a good first impression on businesses.”

Majority of Small Businesses Back Coalition Government

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