If recent reports are to be believed, the UK will be on its way out of recession in 2010. But what has the ‘credit-crunch’ taught small businesses and people considering company formation? We know it hasn’t put them off starting their own company, research has found that company formation figures are up on last year, but what about how the recession has changed the way in which small businesses operate?
According to a recent report, conducted by small business forum ‘Entrepreneurs UK’, the main lesson the recession has taught small businesses, is the importance of keeping costs to a minimum and keeping a careful eye on cash-flow at all times.
The findings of the report revealed that over 55% of all business owners asked ,now how a more in-depth understanding of their overheads, while almost 80% say that the recession has forced them to be more cost efficient than ever before.
Ryan Scott, the director of the report comments; “The recession has posed serious challenges to all corporations, but especially the SME sector. The credit-crunch has made small business owners assess their business costs and develop a more detailed knowledge of their overheads.”
“This has had a number of consequences, namely the reduction of staff cost and switching of suppliers, yet, we feel that the recession has also stimulated innovation and a new cost conscious mentality in the SME sector which will ensure the sector emerges from the recession stronger and more efficient than ever before“