Struggling firms have 'green shoots' hope

Date: 9th November 2009

Conditions for partnerships and other smaller businesses are improving, new analysis released today has shown.

Financial website uSwitch.com said that four in ten firms now see "green shoots" of economic recovery and that 81 per cent believe they will continue trading through the recession.

However, with the economy still in its most protracted downturn on record, a clear majority (58 per cent) of smaller firms said that they were still finding the financial conditions "difficult".

Only 14 per cent said that the recession had had no impact at all on their business.

Jake Ridge, small business expert at uSwitch.com, said: "Most small businesses have felt some pain, whether having to lay off staff, find ways to cut costs or learning to combat cashflow concerns.

"Small business owners are not feeling complacent ... They are continuing to keep a tight lid on costs and know that the next challenge comes at the end of the recession when they begin the task of building their businesses back up again."

Official government forecasts predict that the economy will return to growth over the final quarter of 2009.

Posted by Anthony Burns