Small firms 'surviving' recession

A study shows that almost half of small businesses have maintained their profitability.

This follows recent criticism by Lord Sugar, the government's enterprise champion, who described struggling small companies as "moaners". Most small businesses have used their own cash to get through the recession rather than rely on banks, the study by Kingston University shows. Only a quarter of the 343 firms surveyed saw significant profit falls. "More than half of small business owners survived the recession and the squeeze on credit by using their own savings and personal credit cards," the study said. "This finding is a clear contradiction that all small and medium-sized businesses would suffer heavily in the downturn." It cited small businesses' ability to "adapt, survive and thrive" in the downturn. About 48% maintained or increased their profitability in the past year, it said... read more

BBC News, November 09