Small business owners have seen a marked improvement in the amount of support they receive from their banks over the past month – with the latest figures reflecting the highest level of satisfaction with the system since November 2008 – according to recent findings from business advisory association the Federation of Private Business (FPB).

The report – which reveals that up to 12% of small businesses have noticed a significant increase in bank support over the last month – suggests that up to 26% of respondents have seen an improvement in the viability of their businesses this year, double the number experiencing a decline.

However, despite the positive findings, the report highlights a number of key issues currently facing small business owners. Of all the people surveyed, not one company reported seeing any notable improvement in Government support, with 24% of respondents suggesting it had declined. Other challenges noted by the report include fluctuating exchange rates (eight percent), lack of finance (eight percent), gaining and retaining new business (six percent), profit growth (five percent), red tape (three percent) and increased competition (three percent).

Commenting on the survey, chief executive of the FPB Phil Orford says, “Significantly more business owners can see a future for their companies than are pessimistic about their chances of survival. A slight increase in support from the banks is likely to be a major factor behind this. Although there is still more dissatisfaction with lenders than there is approval of them, more struggling small businesses are reporting positive experiences.”

However, retailer Sue Knowles from card making store Andy Crafts in Chester is unconvinced by the report. “While I don't have any complaints about the bank I am with at the moment – as they have been really good to me over the past year – I can't say I've noticed any real changes in the system over the past year. Due to the current economic downturn, we haven't had to pay any bank charges for the last few months and although this has been very helpful, we will be expected to pay them at the end of the year and that is an added pressure we could do without.

“Banks could easily afford to waive their charges until the economy picks up,” she continues, “and it's support like that which will really make a difference to small businesses in this country. While there has been a lot of talk about what the banks plan to do, there hasn't been much action and I think they need to focus on what will actually help, rather than just what looks good on paper.”

What do you think? Email your thoughts to .(JavaScript must be enabled to view this email address)