Small businesses face ‘double whammy’

12.10.08

BT Business’ State of the Small Business Nation report has revealed that during the current downturn 57% of small businesses are experiencing rising costs and 51% have lost customers.

It is no surprise therefore that half of firms reported worsening trading conditions compared with just one in ten seeing an improvement.

The report also shows that more than a third of UK small businesses take advantage of mentoring schemes and nearly four in 10 seek advice from private organisations such as lawyers or accountants.

Among those willing to ask for advice, counsel is often sought in the most unlikely of places. Wyn Mears, UK director at the Association of Chartered Certified Accountants (ACCA) said there is an increasing tendency for small businesses to look to their accountants for business advice, especially in the light of current economic conditions.

“Businesses have not been panicking but they certainly have been holding their collective breath,” said Mears. “Now’s the time to be looking positively ahead,” he continued. This does not mean that businesses are quite out of the woods yet though, Mears warned: “there are still a few banana skins out there.”

Managing director of BT Business Bill Murphy echoed more positive sentiments expressed by serial entrepreneur and Dragon Peter Jones. “Business is still happening,” said Murphy. “You have to sell your way through this.”

© Crimson Business Ltd.