Business insurer Hiscox reports that small businesses in the UK have not made the dramatic reductions in staff and business outlays that have been a feature of large businesses’ reaction to the economic slowdown.
The study says that 88% of small businesses have not reduced salaries of employees and that 87% have persisted with the payment of staff bonuses.
85% have retained the same level of client entertainment outlays and 82% have maintained the same expenditure on office maintenance.
Only 9% have had staff reductions due to the poor economic conditions and 95% have kept the same level of insurance cover as held previously.
Despite this, the opinion of 45% of small business proprietors is that it will be another 12 months before business conditions return to normal with 23% thinking the recession will last until 2011.
The study says that 64% of small business owners think that increased demand for their products or services will indicate an end to the recession and 47% think that new business opportunities will be the indicator. 20% think that improved credit availability will be the signal of improvement.
This study demonstrates the patience and persistence of small businesses, compared to the automatic reduction response of large UK businesses.
Online local search is now an important source of new prospects for small UK businesses and our Business Directory Portal provides qualified prospects with no cost involved for the business.
Monte Huebsch, CEO.
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