Small businesses bat away recession fears

03/03/08 16:03

UK businesses are continuing to innovate and grow despite recession fears, research has shown.

The 2006/07 Annual Small Business survey, conducted by independent research organisation IFF Research, revealed that nearly half of those questioned were producing new products and services, the highest level since the survey began in 2003.

The survey also revealed that small businesses are increasingly optimistic about flourishing despite the stale economic environment: two thirds of respondents expect their businesses to grow over the next few years, up by 9% on last year’s figures.

The report also showed that the gender divide is far from retreating: only 14% of small businesses are led by women. Business minister Shriti Vadera said that if as many British women started companies as American women there would be 700,000 more businesses in the UK. “Getting more women into business is a challenge, not just for gender equality but for national economic success,” reflected Vadera.

However, the economic downturn hasn’t gone unnoticed: the economy was cited as the fourth biggest obstacle by small business owners. The challenge most frequently cited was competition, followed by regulation and taxation and business rates.

Vadera claimed that the issue of red tape is in hand: “We recognise that regulation is a key business concern and this is why we are driving through one of the most ambitious programmes to ease the burden of regulation on business launched by government.”