SMEs pessimistic on recession end

More than half of small business owners believe that the recession will continue well into next year, it has emerged.

In research conducted by online communications company Amplify, 57% of SME owners said that they expect the recession to last until at least spring 2010, while a similar number (55%) said that their firm's health was linked to the state of the economy.

And 26% of those polled expect their firm to continue suffering after the wider economic recovery has begun.

Asked what, with the benefit of hindsight, owners would have done differently to cope with the downturn, 43% said they would have put more emphasis on sales and marketing, and nearly a third (31%) said they would have made greater staff cuts.

The survey also examined the measures that small firms were taking to stimulate and streamline their business. It found that 57% were cutting costs, 38% were looking to develop new partnerships, and that 43% were improving their website.

Amplify's David Holt said: "There is no doubt that some online collaboration and social media strategies, integrated with corporate websites and email, can really help keep [small firms] in front of their prospects and keep the lifeline of new business flowing in through tougher economic times."

Federation of Small Businesses spokesperson Stephen Alambritis added: "It is hugely reassuring to learn that more small firms are investing in improving their website.

"The global economy has meant the death of distance in commercial transactions and what better way to take advantage of this phenomenon than to invest in online collaboration."