Small Business Research Centre

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SMEs Best-Equipped to Cope With Recession

Small businesses are better-equipped to survive recession than larger organisations, claims the Small Business Research Centre at Kingston University. The centre’s director of research Professor Robert Blackburn said: “Small firms are generally much more flexible than large firms. They are more likely to be able to quickly reduce their costs and outflows, unlike the larger organisation which may have to undergo major structural adjustments to re-align its activities with a decline in market demand”. “The ability of SMEs to make temporary changes, such as reducing the pay of the owner–managers, makes them more able to adapt to adverse market conditions”, according to Blackburn. “Small firms are more resilient than some commentators would lead us to ... »