Small business report: 64% of commercial innovations come from small firms
It's not all doom and gloom for small businesses marketing in recession-hit Britain, according to a new report collated by Promotr. Most small firms not only expect to make a profit but are looking to grow their businesses and invest in training staff in 2009.
Small businesses key to beating recession says report
The country’s 4.7 million small businesses can play a key role in steering recession-hit Britain out of the economic storm, according to a report released today. Small firms make up almost 60 per cent of the private sector workforce and employ 13.5 million people. Companies that continue to promote and market themselves to both old and new markets are most likely to see out the recession successfully. These findings come in a report released today by Promotr, a newly launched company specialising in promoting small businesses.
The Happy Small Business Report assembles a mass of positive facts about the state of small businesses today. In April this year over a third of small firms detected signs of recovery in trading conditions. Nearly two thirds reported a profit in 2008, while more than 40 per cent made more profit in 2008 than they did the year before.
Innovation was a common motivation for trying to raise new finance. Over 60 per cent of innovations come from small firms. Just under half had introduced new or significantly improved products in the last year. More than 70 per cent of small firms have a good relationship with their bank, and had no difficulties in raising finance from the first source they approached. Bank lending to small businesses rose by £235 million to £54.2 billion in January this year.
Just under a quarter of small businesses took on more staff in the three months to April 2009. And 16 per cent plan to take on more staff in the next three months. Sixty-one per cent of small firms paid for or arranged training over the last year, with a quarter expecting to increase their investment in training this year.
Commenting, Helen Ashley of Promotr says:
“Small businesses are one of this country’s little-known success stories. Our report shows the positive impact they have right across the country. Small businesses make up a substantial proportion of the UK economy and they can play a major role in steering us all back to better times. Acting positively in a recession is the key to surviving - and even thriving – through the recession. Those enterprises that are most likely to come through tough times are the ones that promote and market themselves successfully by building these into their business strategy.”
Members of the media can contact:
Helen Ashley on 020 8974 7241.
Out of hours, please use 07976 804314.
