Six months after the Office for National Statistics (ONS) officially announced that the UK is in recession, a new report from Intuit, reveals how small businesses have been performing over the past 12 months.
The results of the research show that one in four small businesses felt no noticeable effect, and 35% had felt a negligible impact from the recession hitting the UK economy.
On the flip-side, one in twenty small businesses have been impacted so severely that their viability is in question.
Recession survival down to initiative and practical actions
Three quarters of small businesses put surviving the recession down to the strength of their own determination and initiative. Only 23% of respondents felt it had been easy to access external help and advice during the recession.
To survive the recession small business owners have used their initiative and adopted some sound business tactics. The most common initiative, used by 45% of respondents, has been to reduce overheads and tightly manage outgoings.
It may be a surprise to learn that the second most popular step, which nearly a third of small business owners took, was to introduce new products or services. This approach flies in the face of the common opinion that businesses should focus on their core operations during a downturn.
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Showing posts with label economic downturn. Show all posts
Showing posts with label economic downturn. Show all posts
Sunday, 26 July 2009
Friday, 24 July 2009
New research suggests the recession has levelled out for small businesses
Small businesses are now more optimistic about their immediate sales prospects, according to the latest Quarterly Survey of Small Business in Britain by The Open University Business School in association with Barclays Bank and ACCA. While 49% of small firms reported that sales were down over the year, most notably in manufacturing and construction, fewer firms now expect to cut employment, and 62% of small firms have not changed employment levels over this past year.
Almost half of respondents, especially those employing more than five people, now aim to expand over the next three years. Within this group, 34% have seen an increase in sales over the past year showing resistance against the generally poor performance of the economy as a whole.
The biggest improvements are for hotels and restaurants (up from -20% to +27%) and retail (up from -27% to +23%). However while construction does not appear to be suffering as much as in 1991/92, it is the sector with the greatest net cuts as it saw a 30% cut in employment, 20% cut in investment and a 20% drop in selling prices.
Read more: http://www3.open.ac.uk/media/fullstory.aspx?id=16485
www.ukba.co.uk
Almost half of respondents, especially those employing more than five people, now aim to expand over the next three years. Within this group, 34% have seen an increase in sales over the past year showing resistance against the generally poor performance of the economy as a whole.
The biggest improvements are for hotels and restaurants (up from -20% to +27%) and retail (up from -27% to +23%). However while construction does not appear to be suffering as much as in 1991/92, it is the sector with the greatest net cuts as it saw a 30% cut in employment, 20% cut in investment and a 20% drop in selling prices.
Read more: http://www3.open.ac.uk/media/fullstory.aspx?id=16485
www.ukba.co.uk
Monday, 20 July 2009
Economic recovery in UK 'on hold'
The UK economy is set to shrink by 4.5% in this year, the biggest fall in a single year since 1945, according to an influential think-tank.
The downbeat forecast is more pessimistic than the consensus view, and considerably worse than the 3.5% fall predicted by the government.
The Ernst & Young Item Club also warned that hopes of economic recovery are "running ahead of reality".
The Item Club also warned of the threat posed to the economy from swine flu.
If doomsday predictions about the extent of the flu outbreak materialise, it forecast a further 3% contraction in GDP this year, on top of the 4.5%.
The flu could also wipe out any growth next year, with a worst case scenario of a further 1.2% contraction.
The Item Club also predicts that UK interest rates will be kept at their current level of 0.5% well into next year.
Read more: http://news.bbc.co.uk/1/hi/business/8157876.stm
www.ukba.co.uk
The downbeat forecast is more pessimistic than the consensus view, and considerably worse than the 3.5% fall predicted by the government.
The Ernst & Young Item Club also warned that hopes of economic recovery are "running ahead of reality".
The Item Club also warned of the threat posed to the economy from swine flu.
If doomsday predictions about the extent of the flu outbreak materialise, it forecast a further 3% contraction in GDP this year, on top of the 4.5%.
The flu could also wipe out any growth next year, with a worst case scenario of a further 1.2% contraction.
The Item Club also predicts that UK interest rates will be kept at their current level of 0.5% well into next year.
Read more: http://news.bbc.co.uk/1/hi/business/8157876.stm
www.ukba.co.uk
Tuesday, 7 July 2009
Government predictions are for the UK economy to shrink by 3.5% in 2009 and recover slowly in 2010 registering an increase of 1.25%
The economic destabilisation caused by the credit crunch has had a devastating effect upon the global economy, with particularly severe consequences for export-orientated economies as consumer demand fell due to the limitation of credit, unemployment increased and the financial sector tipped the real economy into recession.
Though the trend of these events could be forecast, the scale has taken many by surprise.
Government predictions are for the UK economy to shrink by 3.5% in 2009 and recover slowly in 2010 registering an increase of 1.25%, before resuming above trend growth in 2011 with a 3.5% increase in activity.
Other forecasters are more cautious. The British Chamber of Commerce predict -3.8% in 2009 and +0.6% in 2010, whilst the CBI suggest growth rates of -3.0% in 2009 and +0.7% in 2010. These estimates
are close to the consensus of a panel of economists, whose predictions are -3.7 and +0.7 accordingly.
Therefore, the broad view seems to be that the economy will begin to recover in Spring 2010 and produce a modest net rate of growth by the end of that year.
Author: Phil Whyman, Professor of Economics at the University of Central Lancashire
Read more: http://www.fpb.org/hottips/440/Mid_year_economic_forecast.htm
Source: Forum for Private Business - www.fpb.org
www.ukba.co.uk
Though the trend of these events could be forecast, the scale has taken many by surprise.
Government predictions are for the UK economy to shrink by 3.5% in 2009 and recover slowly in 2010 registering an increase of 1.25%, before resuming above trend growth in 2011 with a 3.5% increase in activity.
Other forecasters are more cautious. The British Chamber of Commerce predict -3.8% in 2009 and +0.6% in 2010, whilst the CBI suggest growth rates of -3.0% in 2009 and +0.7% in 2010. These estimates
are close to the consensus of a panel of economists, whose predictions are -3.7 and +0.7 accordingly.
Therefore, the broad view seems to be that the economy will begin to recover in Spring 2010 and produce a modest net rate of growth by the end of that year.
Author: Phil Whyman, Professor of Economics at the University of Central Lancashire
Read more: http://www.fpb.org/hottips/440/Mid_year_economic_forecast.htm
Source: Forum for Private Business - www.fpb.org
www.ukba.co.uk
Friday, 26 June 2009
The number of new foreign investments in British companies increased by 11% last year, despite the onset of the global economic downturn
Businesses from 53 different countries - the largest variety ever in a single year - invested in UK firms in 2008, maintaining the UK's position as Europe's number one investment destination.
With office rates decreasing, the pound falling against the dollar and a wider talent pool than ever before immediately available due to job losses, foreign companies have seen the recession as a great time to invest in the UK.
"At a time when companies across the world are tightening their belts and focusing their investment in the sectors and countries where it will bring the most benefit, these results are testament to the fundamental strengths of the UK’s economy,” said Business Secretary Lord Mandelson.
Source: UKTI
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With office rates decreasing, the pound falling against the dollar and a wider talent pool than ever before immediately available due to job losses, foreign companies have seen the recession as a great time to invest in the UK.
"At a time when companies across the world are tightening their belts and focusing their investment in the sectors and countries where it will bring the most benefit, these results are testament to the fundamental strengths of the UK’s economy,” said Business Secretary Lord Mandelson.
Source: UKTI
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Thursday, 25 June 2009
The worst of the recession is behind us and the economy is now stabilising, the CBI has claimed.
However, the business group said the UK will not return to growth until the beginning of next year.
The prediction comes hot on the heels of last week’s claim by the National Institute of Economic and Social Research (NIESR) that the economy actually grew in April and May.
According to CBI predications, GDP will flatten out during the second half of this year, with figures of -0.1% and 0% in the third and fourth quarters of the year.
Richard Lambert, CBI director general said: “The world recession has deepened, so it is not surprising that the UK economy has continued to suffer. However, the harshest period of the recession looks to be behind us, the economy is stabilising and this should continue during the second half of this year.
“The return to growth is likely to be a slow and gradual one; difficult credit conditions are still affecting business behaviour. For positive growth to return, lenders need to feel more confident so that credit can start flowing again.”
Lambert warned against getting ‘carried away’ by indicators of recovery, insisting it would take some time before any green shoots had a real impact.
The group estimates that the UK economy will have shrunk by a total of 4.8% by the end of the recession.
Source: © Crimson Business Ltd. 2009
www.ukba.co.uk
The prediction comes hot on the heels of last week’s claim by the National Institute of Economic and Social Research (NIESR) that the economy actually grew in April and May.
According to CBI predications, GDP will flatten out during the second half of this year, with figures of -0.1% and 0% in the third and fourth quarters of the year.
Richard Lambert, CBI director general said: “The world recession has deepened, so it is not surprising that the UK economy has continued to suffer. However, the harshest period of the recession looks to be behind us, the economy is stabilising and this should continue during the second half of this year.
“The return to growth is likely to be a slow and gradual one; difficult credit conditions are still affecting business behaviour. For positive growth to return, lenders need to feel more confident so that credit can start flowing again.”
Lambert warned against getting ‘carried away’ by indicators of recovery, insisting it would take some time before any green shoots had a real impact.
The group estimates that the UK economy will have shrunk by a total of 4.8% by the end of the recession.
Source: © Crimson Business Ltd. 2009
www.ukba.co.uk
Sunday, 7 June 2009
The service sector is still in deep recession, but there are also some signs that sentiment is improving
The latest CBI Service Sector Survey also showed indications that the decline in business activity is starting to slow.
The quarterly research, conducted between 29 April and 13 May, covers 179 service-sector firms. They are divided into Business and Professional Services, such as accountancy, legal and marketing firms, and Consumer Services, including hotels, bars and restaurants, travel and leisure.
In Consumer Services, the volume of business fell over the past three months at the fastest rate since November 2001, but because prices rose, the fall in business values was less marked. In Business and Professional Services, values fell even faster than volumes due to record deflation in average selling prices.
However, in both sectors slower rates of decline in both values and volumes of business are expected in the next three months. If realised, the declines in activity would be the slowest since last summer.
Read more: click here
www.ukba.co.uk
The quarterly research, conducted between 29 April and 13 May, covers 179 service-sector firms. They are divided into Business and Professional Services, such as accountancy, legal and marketing firms, and Consumer Services, including hotels, bars and restaurants, travel and leisure.
In Consumer Services, the volume of business fell over the past three months at the fastest rate since November 2001, but because prices rose, the fall in business values was less marked. In Business and Professional Services, values fell even faster than volumes due to record deflation in average selling prices.
However, in both sectors slower rates of decline in both values and volumes of business are expected in the next three months. If realised, the declines in activity would be the slowest since last summer.
Read more: click here
www.ukba.co.uk
Thursday, 21 May 2009
Around 60% of small and medium-sized firms in London are concentrating on expanding their businesses during the recession
The survey of more than 3,000 small businesses in the capital found that despite three-quarters being affected by the economic downturn the majority of small firms do not want to just consolidate their firm, but actually expand.
The poll also found that 42% of small companies are looking to exploit new business opportunities and 17% are developing new products and services to increase their market share.
"There's a great deal of optimism in the face of the recession, with the majority of SMEs remaining committed to growth," said Patrick Elliott, chief executive of Business Link in London
Source: Business Link London.
www.ukba.co.uk
The poll also found that 42% of small companies are looking to exploit new business opportunities and 17% are developing new products and services to increase their market share.
"There's a great deal of optimism in the face of the recession, with the majority of SMEs remaining committed to growth," said Patrick Elliott, chief executive of Business Link in London
Source: Business Link London.
www.ukba.co.uk
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