Small firms optimistic despite the Recession
Small businesses are remaining upbeat about the year ahead, despite the gloomy outlook for the 2009 economy.
Research from Orange revealed that a fifth of small firms are optimistic about the next twelve months and a third believe it will be a hard start to the year, but will pick up later on. Only 32% of small firms believe they will struggle to cope with the downturn. Orange UK vice president for business, Paul Tollett said:
“It is encouraging that over half the respondents of the survey are optimistic for 2009 or believe that things will pick up throughout the year,”.
“We must ensure we do what we can to drive this optimism into action and get British business back on its feet.”
The survey also found that only a quarter of small firms said their credit facilities had been affected by the economic downturn, while 36% said their credit facilities had been unaffected and that they were confident that credit lines would remain unchanged in the coming year.
The Institute of Directors head of parliamentary and regulatory affairs, Alexander Ehmann, said it was unsurprising that firms were managing to remain buoyant about the coming year.
“There’s no doubt that there have been some really testing economic conditions, and perhaps these will intensify in 2009, but so far it’s not the Armageddon that has been painted by some,” he said.
“We’ve been struck by how positive our members have been, namely by preparing themselves for the worst by making ‘easy picking’ cutbacks and shedding unnecessary spending in areas like hospitality. For the moment, staffing levels are also holding up well and our members seem to be using skills development to maintain and sharpen their competitive edge.” added Ehmann.