Small firms side-step the recession

Six in 10 small firms have thrown off the worst of the recession and either maintained or accelerated business growth, a new survey suggests.

Figures from PayPal and DIY website firm Mr Site show that the most 'recession-proof' industries have been education, manufacturing and public sector-focused firms. The legal professions and media have taken the worst hit, they said.

The news follows more tentative signs that the worst of the downturn is over. This week the Office of National Statistics said manufacturing output increased 0.2 per cent in April and by the same amount in March.

Meanwhile business lobby the CBI predicted a widespread recovery in the economy from 2010, though it added output would shrink by a whopping 3.9 per cent this year. CBI director-general cautioned against “getting carried away” with talk of green shoots.

“This research shows that despite the doom and gloom of the financial climate, small businesses are still finding ways to fight back,” said Mr Site co-founder Beatrice Hatherley. 

“It’s exciting to see British small businesses performing so positively and it’s clear that the web is crucial to the success of small enterprises.”

In other figures from the survey, more than half of respondents said having an online presence increased their turnover in the last 12 months, while four in 10 said sales had increased by up to 30 per cent.

One in six business questioned said they were considering moving to a purely online model because of their positive sales figures online.

In related news, Morgan Mckinley’s latest employment snapshot of the financial services industry in London shows that vacancies were up 14 per cent in May compared with April.    

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By News Desk  on   Jun 18,2009

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Keywords

recession    small business    recovery    Mr Site    CBI    online firms   

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