How has the credit crunch hit you?

The majority (83%) of UK businesses still cite business growth as one of their key objectives despite the current economic environment, according to the Institute of Chartered Accountants in England and Wales (ICAEW).

The research found that the credit crunch has had a negative effect on 65% of organisations, with 72% saying it has made it harder to plan and 64% and 53% experiencing increases in short and long-term borrowing costs respectively.

But over half (51%) said they had seen positives in the shape of weakened competitors and 32% thought it had increased their opportunities for business acquisitions.

Companies are also putting a greater focus on increasing cash balances and paying off debt, the survey found, meaning they should be in a better financial position when the environment improves.

Businesses know that the climate isn't going to improve in the short term. Yet despite this they remain focused on growth and profitability

"Nobody can yet tell what the impact of the current turbulence in the financial markets will be on the broader economy," said Clive Lewis, head of SME issues at ICAEW.

"Businesses know that the climate isn't going to improve in the short term. Yet despite this and after all that they have had to respond to in the last 12 months, they remain focused on growth and profitability."

The biggest obstacle to business growth was seen as the UK's regulatory and tax environment, with 53% saying this was not business-friendly. Smaller companies were more likely to cite this as a barrier than larger firms.

As well as business tax, employment legislation and employment tax were cited as further barriers to growth.

"There is a clear message to the government in these survey results: UK businesses need help to get through this difficult economic period," added Lewis.

"That means fewer regulatory and taxation changes, proper consultations on any proposed changes and enough time and support for businesses to get to grips with it all.

"What we want for UK businesses is a level playing field both within the UK and with other markets, and that requires greater stability from the government to assist businesses through the uncertainty caused by the current economic turbulence."