Stall in trading worries SMEs

Despite the recession officially subsiding at the end of last year, 71% of SMEs have seen little or no improvement in trading levels compared with 12 months ago, according to new research.

uSwitchforBusiness.com has found that 63% of SME bosses are finding trading conditions tough in the current climate, 5% more than late 2009. The recession's scars are still visible as 44% claim it will take more than a year to recover and 10% believe their future is uncertain.

However, some SMEs are optimistic about the position the recession has left them in. 11% say that they are in better shape than they were before the downturn, while 20% say that it has left them fighting fit.

But fears of the dreaded double dip recession are still ringing around SME firms, with 62% claiming the economy will stumble before fully recovering and a pessimistic 26% think signs already show such a downturn is spreading.

uSwitchforBusiness.com's SME Confidence Survey, which tracks opinion and issues concerning Britain's small traders, found that with recovery a possibility, the biggest challenge facing 43% of businesses is increasing sales and turnover, followed by dealing with regulation and red tape for 13%.

"The greenshoots of recovery are yet to reach Britain's SMEs and as a result many are finding trading even tougher now than before. They've been through a white knuckle ride and most are not expecting a smooth landing," commented Jake Ridge, Small Business Expert at uSwithforBusiness.com.

"The main message coming through is that Britain's small businesses face a long and fragile recovery. It's now vital that they continue to keep a lid on costs while getting back on the road."

Source: TLA