One in four firms sees 'decline in business'

Date: 12th February 2009

One in four small businesses has seen a decline in business as a result of the recession, statistics have shown.

An investigation by the Forum of Private Business (FPB) found that 25 per cent of companies - including sole traders and partnerships - were struggling to draw in new customers, while 12 per cent suffered from cashflow problems.

The survey - which focused exclusively on the south-west of England - illustrated the extent of the poor economic situation, which could encourage businesses to seek advice from an accountant.

Chief executive of the FPB, Phil Orford, said: "Many business owners are not producing and utilising the strategies necessary for survival growth.

"Companies investing in marketing, machinery and their staff, while not immune from the effects of recession, are often able to limit the impact of the downturn."

He concluded that small businesses must "adapt and innovate" if they are to survive.

Also this week, the Federation of Small Businesses urged the government to delay new laws on flexible working and time off which could place more financial pressure on firms.