Small businesses defiant as recession arrives

Date: 23rd January 2009

Small businesses have shown defiance in the face of economic disaster after it was revealed the UK is now officially in a recession.

Data published by the Office for National Statistics (ONS) this morning (January 23rd) showed that the British economy had officially contracted for the second consecutive quarter - fulfilling the accepted definition of recession.

Chairman of the Federation of Small Businesses, John Wright, believes that small firms - such as sole traders and partnerships - will be the ones to get the economy back on its feet.

He said: "As we officially move into recession we must not forget that small business are the engine room of the economy and are actually in a key position to generate new jobs and avoid further redundancies."

He added that small firms would be the sector to pull the country back from the economic crisis, but needed government support to do this.

According to figures from the ONS, the UK's manufacturing sector was the biggest contributor to the economy's contraction, shrinking by 4.6 per cent.