Small businesses showing recession resilience, study shows

Date: 5th May 2009

Small businesses are defying the recession and proving their resilience during the economic downturn, it has been revealed.

Statistics published by Business Link, the government advisory service, show that two-thirds of smaller firms in London are looking to expand over the next 12 months, SMEweb reported.

Additionally, approximately 42 per cent of enterprises in the capital, such as limited companies and partnerships, are hoping to explore new business opportunities while 17 per cent aim to develop new services and products.

Chief executive of Business Link in London, Patrick Elliott, told SMEweb: "Though economic forecasts for the year ahead remain gloomy, the majority of small businesses are actively looking for opportunities, some even created by the recession, to boost their business."

Mr Elliott added that the results were "encouraging" and displayed resilience within the regional sector.

In contrast, a recent study by PricewaterhouseCoopers suggested that rates of business insolvency were unlikely to slow during the coming months.