Despite gloom about the economic downturn about one fifth of small companies expect to be able to expand their businesses this year, new research suggests.
According to research from Close Invoice Finance nearly one million (970,000) of the country’s small or mid-sized businesses expect to expand during 2009.
The survey of over 500 businesses also found that despite pessimistic forecasts elsewhere only 4% of entrepreneurs thought they would go out of business and nearly half (45%) predicted they would stay the same size during 2009.
Also, two-thirds of employers expected to keep the same number of permanent staff, while one in seven (13.9%) said they would recruit new permanent employees during 2009.
“There is no doubt that these are some of the most challenging financial conditions of recent times and everyday there are further gloomy predictions about the health of British small and medium size businesses,” said David Thomson, chief executive officer of Close Invoice Finance.
“But, as our survey shows, this sector is incredibly resilient and, even as the UK enters a recession, one in five businesses still expects to expand this year.”
“While I applaud the government’s proposals to reignite lending to small businesses, it remains to be seen how quickly they will provide any relief.”
© Crimson Business Ltd. 2009