Small Businesses Still Going Strong despite Recession
New research that examined how small businesses have been performing over the past 12 months shows that one in four small businesses have felt ‘no noticeable’ effect, and one in three have had a ‘negligible’ impact from the recession hitting the UK economy.
On the flip-side, one in twenty small businesses have been hit so severely that their viability is in question.
When it comes to coping with the downturn, three quarters of small businesses put surviving the recession down to the strength of their own determination and initiative. Companies are still continuing to buy small business insurance policy even though the economy isn’t great
The report finds that small business owners have used their initiative and adopted some sound business tactics. Unsurprisingly, the most common initiative, has been to reduce overheads and tightly manage outgoings.
However, it is a surprise to learn that the second most popular step, which nearly a third of small business owners took, was to introduce new products or services. This approach flies in the face of the common opinion that businesses should focus on their core operations during a downturn.
The survey also reveals that mall business owners have recognised the importance of managing cash flow during a recession. To improve their cashflow small businesses have taken specific actions including; renegotiating terms with customers, taking out a business loan, and using trade finance and invoice finance where possible.
Comments Off