Recession will hit small businesses 'for the next 9 months'
According to new research, 57 per cent of small to medium-sized enterprises (SMEs) believe they will feel the effects of the recession for at least the next nine months.
The survey, released by Amplify Research, has found that 48 per cent of businesses have seen their income fall by up to 20 per cent within the last six months, with 36 per cent claiming the second quarter of 2009 was the worst quarter in terms of orders and sales.
A spokesman for the Forum for Private Business commented that SMEs, by nature, have to "be a bit more pessimistic and cautious in these times."
However the recession has also spurred innovation, with 38 per cent of businesses carrying out sophisticated work, such as new partnerships and joint ventures.
In a separate survey conducted by the Department for Business, Innovation and Skills, 64 per cent of businesses said they were exploring new product areas.
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Nine months sounds a little optimistic. At least here in America, there is a whole other wave of mortgage resets coming up - and this one is expected to hit more expensive neighborhoods with an even higher default rate. This wave of resets goes well in to 2011 and the fallout could last even longer.
A true recover is going to take some debt reduction, and this is a process that will take years to happen even at the newly found savings rates. The economy has too many problems to just recover, so I plan on treating recession as the "new normal" for many years to come.
Too cautious & pessimistic? ;)
I agree John, 9 months is too small certainly based on feedback I am getting through friends and colleagues.