Most small businesses expect the recession to last about two years. Small businesses actually collectively predict the recession to last 1 year and 11 months. However, 20% of SMEs fear the recession will last 3 years or more.
Throughout December 2008 KashFlow canvassed more than 1800 users on their opinions about survival and business success in the future. The results offer a fascinating snapshot of SME concerns and an insight into their resolve to survive the economic downturn.
The survey also discovered that small businesses are committed to retain staff – more than 80% do not anticipate losing staff through redundancy. In fact, more than 30% intend to take on new staff.
More than half of small businesses are anticipating cash flow issues caused by the recession. Despite anticipated slower payment, more than 60% were not anticipating delays in paying suppliers themselves.
Small businesses are in bullish mood with 77% predicting sales growth in 2009. More than 60% of small businesses instead to diversify to survive the recession. More than half of small businesses are intending to increase marketing spend.
Duane Jackson managing director of KashFlow who commissioned the report said:
“If the UK economy needs inspiration to work its way out of this recession – then it should look no further than the country’s SMEs. More than three quarters of them are planning for increased sales despite the economic down turn. They are seeking out new business opportunities, spending more on marketing and employing more staff.
“The dynamic response of SMEs and sheer bloody-mindedness is the approach larger businesses and financiers should be doing to drag us through the current down turn.”