Small Businesses have done a better job at surviving the recession, than most would think. According to a recent study by Kingston University, 48% of small businesses have maintained or increased their profitability in the past year.
This news follows recent criticism by Lord Sugar, the government’s enterprise champion, who attended a small business event recently in Manchester and described small companies as “moaners”! In his own words, “I can honestly say a lot of problems you hear from people who are moaning are from companies I wouldn’t lend a penny to”. He then went on to say at the event – “They are bust and they don’t need the bank – they need an insolvency practitioner”!!
His comments were not appreciated by small businesses, who have worked extremely hard to survive the recession without the government or banks support. The study shows the majority of small businesses have used their own personal savings account and credit cards to ensure cash flow continuity.
Kingston University found that only a quarter of the 343 commercial and industrial firms surveyed saw significant profit falls. The study highlighted small businesses’ ability to adapt, survive and thrive in a worsening economy.
Culture is a key ingredient to surviving through bad times. Here at Linear Blue, culture is embedded into our organisation, inspiring the company to strive to be the best we can be.
The Federation of Small Businesses (FSB) recently stated that small firms “lie at the heart of our economy and are working hard in difficult times”. We may not have Lord Sugar’s support, but we do have the FSB’s support! Linear Blue are members of the FSB and continue to work closely with the organisation.
Small businesses, let’s keep striving and smiling, we will survive!