Small firms sure of beating credit crunch

Date: 6th October 2008

The UK's small businesses are confident of beating the credit crunch, new research has discovered.

The Institute of Chartered Accountants in England and Wales's (ICAEW) yearly UK enterprise survey report found that small businesses have no plans to bow down in the face of economic pressure.

According to the report, over 50 per cent of small to medium enterprises (SMEs) believe that the downturn will weaken competitors, while more than a third say that it has increased opportunities for business acquisitions.

Clive Lewis, of the ICAEW, said: "Businesses show that they are determined to continue doing what they do best - focus on growth and increased profitability."

Mr Lewis added that the government should be giving more help to SMEs, such as fewer regulatory and taxation changes, as well as proper consultations on proposed alterations.

The EU Commission recently called on its member states' governments to reduce the "burden of red tape" on small businesses.