UK small businesses remain defiant in the face of recession
October 7th, 2008 | by James WelchA new survey has revealed that entrepreneurs and the small business community retain a confident and positive outlook in the face on the economic downtown.
Despite 84% of respondents believing the UK economy to be on the verge of recession, business leaders are delivering an unequivocal message that they will continue to prosper in the current climate. The significant majority of respondents expect to increase turnover, take on more staff and rate their prospects of business success as good over the next twelve months.
The survey has been undertaken by Evans Easyspace, the UK’s leading provider of workspace for small and growing companies. It targeted over 600 companies across the company’s 50 business centres nationwide.
Highlights of the survey include:
· 91% of respondents rated their company’s business prospects over the next 12 months as ‘Good’ or ‘No Change’ (61% stated ‘Good’)
· 77% of respondents stated they expected their turnover to go up or stay the same over the next 12 months (52% expect it to go up)
· 88% of respondents of respondents said they expected to take on more staff or make no change to workforce numbers in the next 12 months (37% said they would be employing more people)
· 59% of respondents stated that their business has not been affected by the credit crunch
· 71% of respondents stated they were not experiencing greater incidences of bad debt
Tom Stokes, managing director of Evans Easyspace, said: “Despite the doom and gloom which is currently being reported, this service suggests that the small business community is in good health and is approaching the next twelve months with bullish confidence. Occupiers at our business centres represent a broad cross section of businesses, operating in different sectors.
He continued: “The demand for workspace from SMEs remains high. We are developing over 300,000 sq ft of office space this year to meet this increasing appetite in the market for workspace. Using this survey as a barometer, despite the current economic climate, the small business community is in good health and facing the next twelve months with optimism.”
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3 Responses to “UK small businesses remain defiant in the face of recession”
By Rose Turner on Oct 7, 2008 | Reply
As a small business owner that has just seen this article on Google News, this fills me with some confidence. I cannot help feeling that we are talking ourselves down somewhat, even though I understand that there are problems in the financial world.
As for my business, I am looking to add 2 more staff this year, in a so-called tough industry, so it cant be that bad.
Are we just talking ourselves in to it?
By Craig Danson on Oct 7, 2008 | Reply
I would like to see these figures 1 week and 1 month from now. Wonder if they would be the same?
By Simon Rattray on Oct 7, 2008 | Reply
I think part of this is based on the fact that the credit crunch has not percolated into the “real” economy as much as it looks as though it might do. Energy costs and inflation have increased with the UK mortgage market stagnant. However unemployment has not really been hit significantly at the moment.
Should we enter a biting recession, close to what we had in the early 1980’s and 1990’s with repossessions / bankruptcy and high unemployment then I think SME’s would feel the pinch a lot more.