Small firms predict two years until recovery

The majority of small businesses expect it will be two years before the UK makes a full economic recovery, a survey has revealed.

QBE, the business insurer, has found that 58% of small and medium sized enterprises predict a two year wait before Britain sees an economic revival, an increase from 47% of firms that predicted this six months ago.

Commenting on the results, Terry Whittaker, managing director of QEB European Operations, said: “Small to medium sized enterprises form a crucial section of UK business and it is important that their collective voice is heard on the future of our economy, because they have a key role to play in its recovery.”

Of the businesses surveyed, over half said they would experience difficulties if the current conditions were to persist, and 84% claimed they would not hire any more staff this year.

However some businesses have benefited from the downturn, with 44% saying they are more competitive thanks to the recession, and almost 80% expecting to either maintain or increase sales turnover in the second half of 2010.

© Crimson Business Ltd. 2010