Small firms forecast growth despite recession

Date: 20th April 2009

About a fifth of small business managers are predicting that their enterprise will grow during the recession, it has been shown.

An investigation by the telecommunications giant O2 revealed that 20 per cent of smaller companies are confident of expanding their trade during the next six months.

The group also suggested that many were implementing cost cutting measures - something which an accountant could provide vital support with.

Head of small business marketing at O2, Simon Devonshire, said: "Small businesses are determined not to fall victim to the recession and are scrutinising their business model to see where savings can be made and new business won."

He added that "confidence is essential" for small firms in the current climate and many managers had appropriately taken on a "thrive and survive" mantra.

Recent research by the Centre for Economics and Business Research showed that the temporary VAT cut helped boost UK retail sales at the start of 2009.