Recession will last two years, say small businesses

Date: 17th December 2008

Small business owners and managers are predicting that the forthcoming recession will last two years, according to research.

An investigation by Spark Ventures also found that 69 per cent of business start-ups believed that delayed or cancelled client contracts would be a major issue during the downturn.

What's more, over half of businesses felt that reduced bank lending was a problem, although government initiatives - including cutting taxation - have helped to address to this.

Andrew Carruthers, chief executive of Spark Ventures, said: "The current instability is having a hugely damaging effect on businesses across the UK as they face increasing pressure on their finances, a situation exacerbated by reduced bank lending."

Small businesses concerned about the effect the recession could have on their operations should consider speaking with an accountant.

Small enterprises managers should also remember that the self-assessment tax return deadline falls on January 31st, with submissions now having to be made online to HM Revenue and Customs.