Ever since the government announced that the country was officially out of recession, our attention has been focused on how our rate of recovery compares to all countries and to what extent UK enterprise has recovered from the economic downturn.
Well, according to a recent report conducted by magazine ‘Enterprise UK’, most small companies in the UK are still suffering from the effects of recession and many company formation owners fear that their businesses will never return to pre-recession profitability.
Adam Grange, founder and CEO of high street retail chain ‘Direct Homeware’ comments; “The last recession will go down in history as the toughest in terms of its impact on the high street. Not only did the recession have an impact on consumer confidence, it also changed consumer behaviour and stimulated the rise of ‘discount shopping’, so that now, not only does the high street have to compete with online retail, it also has to deal with aggressive price cutting.”
Editor of ‘Enterprise UK’, Richard Simmons, comments; “The fact is the SME sector is still dealing with long term effects of the recession. The decline in consumer spending and lack of available finance makes doing business in the UK at the moment extremely tough. The government needs to devise an action plan on how to move forward.”