Trading not improving for smaller UK firms

Date: 12th April 2010

More small businesses in the UK are finding trading conditions "tough" despite the official end of the recession, according to a new report.

Research carried out by price comparison service uSwitch.com, has revealed that 63 per cent of smaller firms are having difficulties, an increase of five per cent when compared with the end of last year.

The report also revealed that 71 per cent of small enterprises have noticed "little or no improvement" in trading over the last 12 months.

As a result, 62 per cent of respondents fear a double-dip recession, saying the economy is going to get worse before it improves, while more than a quarter feel a new decline has already started.

Jake Ridge, small business expert at uSwitch, said: "The green shoots of recovery are yet to reach Britain's smaller firms and as a result many are finding trading even tougher now than before.

"Small businesses have had to make some tough choices and difficult decisions to get through the recession - 58 per cent had to cut costs, 47 per cent experienced cashflow concerns and 42 per cent saw a drop in demand. It's now vital that they continue to keep a lid on costs while getting back on the road to recovery."