More than a quarter of small business owners believe their companies are in a stronger position now than they were this time last year, a study has shown.
A survey of nearly 3,000 small firms conducted by telecommunications firm O2 found that many had streamlined their operations over the past year, leaving them well placed to capitalise on forecasted economic growth in 2010.
Nearly a third of small business owners said they felt more confident about their businesses’ performance than they did at this point in 2008.
Shaf Rasul, entrepreneur and star of BBC Online Dragons’ Den, commented: “Throughout a year of the deepest recession on record, small businesses have been finding ways to adapt to the climate and, in some cases, even use it to their advantage – and they are now entering 2010 ready to fight.”
While four out of 10 respondents had made redundancies over the past year (compared to just one in 100 in a similar poll six months ago), almost 60% said they thought that this, along with other steps taken to improve working capital, would enable their firms to perform better next year. More than a third predicted increased profits over the next three months.
Daniel Ox, founder of fruit delivery service Fruit For The Office, said: “We have stripped away much of the unnecessary elements of the day to day running of our business, through actively speaking to suppliers to renegotiate pricing and credit terms, as well as cutting back on all possible costs right down to stationery and diesel.
“Most importantly, a ‘team effort’ attitude has been encouraged throughout this year. I feel very excited about 2010 – we are coming out of recession with the benefit of the lessons learned during the bad times.”
Other steps that entrepreneurs have been taking to improve their cashflow included reducing stock levels, using technology to enable remote working and tightening credit control, O2 said.
Warren Bardsley, co-founder of fashion retailer Gorgeous Couture, added: “2010 will be a very exciting time for Gorgeous Couture and we are better placed than we were last year, despite the economic climate.
“The situation of economic crisis has seen off the weaker businesses and brands and has simply been a survival of the fittest, making the industry leaner and more competitive.”
Low consumer confidence and economic uncertainty were found to be the biggest causes for concern among small business owners. Almost 70% correctly cited that the UK was still in recession, which was confirmed by official figures released yesterday.
The latest figures from the Office for National Statistics (ONS) showed that the UK economy shrank by a further 0.2% between July and September, contracting for the sixth consecutive quarter. This makes the current downturn the longest and deepest since the Second World War, while the UK is now officially the only G20 nation still in recession.
© Crimson Business Ltd. 2009