Firms grown in recession through innovation

Date: 3rd December 2009

Partnerships and other small businesses have found innovative solutions to problems caused by the recession, an ICM Research poll has revealed.

The survey, carried out for the Federation of Small Businesses (FSB), showed that 53 per cent of firms have introduced either "new" or "improved" products and services in the last year.

This flurry of innovation coincides with the UK economy suffering a contraction of near-unprecedented sharpness.

Reports suggest that chancellor of the exchequer Alistair Darling will use next week's Pre-Budget Report to unveil new government figures showing that GDP will decline by 4.75 per cent during 2009.

However, the FSB-ICM poll suggested that, due in part to the new products and services, 27 per cent of small businesses experienced an increase in profitability over the last year.

The firms also support tax changes, with 31 per cent believing a cut in employers' National Insurance would bolster their growth prospects in the present recession.

John Wright, national chairman of the FSB, said: "As the UK goes to the polls next year, public debt and unemployment will still be high, and the government will have to make tough decisions to encourage recovery.

The FSB-ICM ‘Voice of Small Business' Survey 2009 shows that small businesses will clearly be at the heart of that recovery, and must be given all the support they need to get on with the job of growing the economy out of recession."

Posted by Emily Smith