62% of small businesses maintaining staff levels

Date: 13th July 2009

More than half of small firms have avoided making staff cuts over the past year, according to research by the Open University Business School.

Despite the recession, 62 per cent of small businesses were able to maintain their staff levels - a sign that Britain's smaller businesses are beginning to cope.

Furthermore, almost half of those businesses surveyed believe they will experience growth in the coming year, with 34 per cent of this group having already enjoyed increased sales in the past 12 months.

Professor Colin Gray of the Open University Business School, said: "These second quarter results show the mood of UK small businesses as one of cautious optimism.

"The decline appears to have slowed and may be levelling out and points to small businesses having a very different experience of recession."

Professor Gray said that in the survey's 25 year history, small firms had shown an "impressive resilience" to tough economic conditions.

The research was conducted in association with Barclays Bank and ACCA.