It was predicted to be one of the closest elections ever, but it seems the opinion polls were wrong. We look at what a Conservative majority might mean for small businesses and what the reaction has been.

Small businesses and the election

Business owners certainly seemed keen to make their voice heard, with 90% of them saying they would be voting. If that figure was in any way accurate, that is significantly higher than the 66.1% turnout for the election as a whole.

And our research showed that 60% of small business owners said the Conservatives' manifesto best supported the needs of small and medium-sized enterprises. So the result will be welcomed by many small businesses.

However, on a personal level, the leaders of all the parties weren’t seen as very appealing, with 25% of small businesses saying they wouldn’t offer any of them a job. In an election that saw a lot of surprise lost seats, this isn’t great news for the candidates.

What the Conservatives promised

Now the outcome is known, it’s worth taking a look again at the election promises. Here is a round-up of the key points from the Conservative manifesto and interviews throughout the campaign:

Work, allowances and benefits

• No rise in VAT or National Insurance contributions
• Raise personal allowance to £12,500
• Raise 40% tax threshold to £50k
• Increase minimum wage
• Ensure people working 30 hours a week on minimum wage are kept out of tax
• Maintain the freeze in working-age benefits for the next two years
• 30 hours of free childcare per week for working parents of 3- and 4-year-olds
• Fund 3 million apprenticeships

Business rates and taxes

• Review of business rates by the end of the year
• Oppose increases to Corporation Tax

Cash flow, finance and business growth

• Strengthen the Prompt Payment Code and ensure that all major government suppliers sign up
• Establish a new Small Business Conciliation service to mediate in disputes, especially over late payment
• Triple the number of start-up loans to businesses to 75,000
• £1 billion to help 500 fast growing firms secure financial support to grow from small to medium size
• Raise the target for small businesses’ share of central government procurement to one-third
• Set a new, higher, permanent level for the Annual Investment Allowance

Red tape

• Cut £10 billion of red tape
• Keep One-In-Two-Out rule

Broadband

• Roll out universal broadband and better mobile phone connections
• Ensure superfast broadband is available to 95% of the UK by the end of 2017

EU

• David Cameron said he “will not lead a government that fails to deliver a referendum on the UK's EU membership”

How businesses have reacted to the election result

So, what does the Conservative win mean for business? The initial reaction in the City was positive, with the pound hitting a two-month high and a 2% surge in the FTSE 100 index.

The reaction amongst smaller businesses is harder to track, although many who have blogged or commented have expressed relief that there is a clear majority and that the uncertainty over a coalition has been avoided.

What about you? What was your reaction to the election result and how do you think it will affect your business? Do share your thoughts on our discussion board and see how others have reacted.