Small businesses have adopted the mantra ‘where there’s muck there’s brass’, as the looming recession pushes down costs and lumps pressure on their competitors.

The facts:

A survey published today by accountancy group Tenon paints a gloomy picture of the small business economy, with demand for goods and confidence falling dramatically.

But a significant majority of small firms responding to the poll said they were eager to exploit opportunities thrown up by the rocky economy.

Three in ten said they were taking advantage of falling input prices, or were adopting a mercenary stance by killing off weakened market rivals.

Some 40 per cent of these said they had pinched customers while 13 per cent claimed to have acquired other businesses at a knock-down price. 

Among the more gloomy findings from the report, the number of businesses owners feeling confident about the future dropped eight per cent, but more than half (53 per cent) said they remained positive. In 2007 that figure was 86 per cent.

Two thirds agreed with chancellor Alistair Darling’s assessment that Britain is facing its toughest economic patch for 60 years, yet 55 per cent thought that the government’s action to solve the crisis would have no lasting benefit.

They said:

Carl Jackson, head of recovery at Tenon, said: “Britain’s entrepreneurs are at the frontline of the economy, and as the effects of the recession deepen, small businesses are the first to feel the pinch.

“It’s important that SMEs have strong plans in place to contend with a drop in demand from customers and reduced finance options.

But he added: “It is encouraging to see that those entrepreneurs that are willing to take calculated risks are still able to reap the rewards and will be in a position to strengthen their business further as times continue to get tough.”   

We say:

Once again, a survey reveals that despite the prevailing gloom shrouding the UK economy, a significant section of the small business market is bearing up well.

True to form, entrepreneurs are looking on the bright side and have found ways to make the most of a bad situation by bargaining down supplier prices and snapping up rivals.

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By News Desk  on   Nov 28,2008

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Keywords

Tenon    recession    downturn    opportunities    Darling    pre-Budget   

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