When the recession first hit, many thought that the SME would be the worst hit, however, a large proportion of small businesses survived and the number of people forming a company actually increased. Yet now, as the UK’s economy emerges from the recession, a poll conducted by Abbey Commercial banking has revealed that the same small businesses which survived the recession, have failed to plan – either strategically or financially- for economic recovery.
The report revealed that less than 10 per cent of all small businesses in the UK had actually but in place a ‘Post-Recession Recovery Plan.’ It also found that those companies which do have a recovery plan are the ones planning to recruit more staff.
While almost sixty per cent of the small business owners asked said that they felt confident about their future, over forty per cent commented that they felt the UK’s current rate of economic recovery would be unstable and that threat of a double-dip recession was still very much a reality.
James Gordon, a commercial banking manager at Abbey, commented:
“While all recent figures point to the fact that the UK has emerged from the recession, our recovery is still somewhat stunted, especially when compared to other countries. Also, for most small businesses, market conditions and consumer confidence have not improved significantly and therefore, while the recession may be over according to government figures, for many small businesses, they are still struggling with its aftermath.”