Majority of smaller firms 'unaffected by recession'
Commercial insurance
22nd June 2009
Three-fifths (60 per cent) of small businesses in the UK claim their turnover has not been affected by the economic downturn, a new report has revealed.
According to a study by Mr Site and PayPal, the operations of small and medium-sized enterprises (SMEs) in manufacturing (engineering and utilities), education and the public sector have been most resilient in the recession.
Firms in the legal, human resources and finance industries have been most acutely affected by the current economic climate, while the internet has been integral to SMEs remaining steady over the past year, with online shops and websites credited with increasing turnover.
Cameron McLean, PayPal's general manager for UK merchant services, stated: "Times are undoubtedly tough but we are hearing from many small businesses that are proving remarkably resilient."
However, a representative of the British Chambers of Commerce recently warned that smaller companies are "most vulnerable" to the risks associated with late payments.
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