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Small Businesses Beating Recession
Listed under: News
Published: Wednesday, December 02, 2009
Innovation has been the key to overcoming the economomic downturn this year, seeing more than 50% of smaller businesses beat the recession with the launch of new products and services over the past 12 months, according to a new survey by business support group, the Federation of Small Businesses (FSB).
The past year has seen 53% of companies introduce new or improved ranges or services to their existing offers, with 51% of businesses revealing they plan to continue innovating over the next 12 months.
The FSB believes that smaller enterprises are the key to getting the UK out of the recession – currently accounting for up to 80% of the new jobs created in the five years to 2007.
The survey – which saw the organisation question 10,000 business owners across the country – suggests that smaller enterprises have not been as hard-hit by the recession as previously thought, with 27% of respondents saying their profitability had increased over the past year, and a further 31% seeing their sales volumes grow significantly.
The research also reveals that three in 10 business owners currently believe fairer lending from banks would improve their prospects, with a further 31% suggesting a cut in taxes would be the secret to sustaining economic growth.
Of the people surveyed, 42% identified growing their companies as the key initiative they would invest in should there be a tax cut, with a further 19% saying employing more staff would be at the top of their agenda. Investing in new services, developing marketing and increasing wages were also popular responses.
Commenting on the findings, John Wright, national chairman of the FSB, says, “With half of businesses expecting to expand their client-base and one in five intending to employ more staff in the coming year, this is no time to pull the support for this vibrant sector, which is at the heart of economic growth.
He continues, “As the UK goes to the polls next year, public debt and unemployment will still be high, and the Government will have to make tough decisions to encourage recovery. The survey shows that small businesses will clearly be at the heart of that improvement, and must be given all the support they need to get on with the job of growing the economy out of recession.
“The FSB is calling for a renewed economic stimulus to help small businesses continue to create jobs, get access to crucial finance, innovate and start up new businesses, to get us squarely on the road to recovery,” he concludes.
The past year has seen 53% of companies introduce new or improved ranges or services to their existing offers, with 51% of businesses revealing they plan to continue innovating over the next 12 months.
The FSB believes that smaller enterprises are the key to getting the UK out of the recession – currently accounting for up to 80% of the new jobs created in the five years to 2007.
The survey – which saw the organisation question 10,000 business owners across the country – suggests that smaller enterprises have not been as hard-hit by the recession as previously thought, with 27% of respondents saying their profitability had increased over the past year, and a further 31% seeing their sales volumes grow significantly.
The research also reveals that three in 10 business owners currently believe fairer lending from banks would improve their prospects, with a further 31% suggesting a cut in taxes would be the secret to sustaining economic growth.
Of the people surveyed, 42% identified growing their companies as the key initiative they would invest in should there be a tax cut, with a further 19% saying employing more staff would be at the top of their agenda. Investing in new services, developing marketing and increasing wages were also popular responses.
Commenting on the findings, John Wright, national chairman of the FSB, says, “With half of businesses expecting to expand their client-base and one in five intending to employ more staff in the coming year, this is no time to pull the support for this vibrant sector, which is at the heart of economic growth.
He continues, “As the UK goes to the polls next year, public debt and unemployment will still be high, and the Government will have to make tough decisions to encourage recovery. The survey shows that small businesses will clearly be at the heart of that improvement, and must be given all the support they need to get on with the job of growing the economy out of recession.
“The FSB is calling for a renewed economic stimulus to help small businesses continue to create jobs, get access to crucial finance, innovate and start up new businesses, to get us squarely on the road to recovery,” he concludes.
