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Small firms 'still suffering'

Small firms are still suffering from the effects of the recession, with few signs that the economic downturn had lifted for them, according to new research released this week.

A study of almost 850 firms by the Open University Business School showed that over half had seen their sales fall in the past year, while the economic climate and cash flow remained their top problems.

The pace of decline appeared to have slowed, with over one in five companies reporting that sales had increased since the recession started.

Almost a third had cut staff in the past year, with just one in 10 recruiting new workers.

Professor Colin Gray, professor of enterprise development at the Open University Business School, said: “Small firms are clearly still reeling from the effects of the recession but resilience and flexibility are among their noted strengths. There are already clear signs that most small firm owners are beginning to look beyond the recession.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .