Fifth of small businesses not profitable since 2008
Nearly one in five small and medium-sized firms in the UK have not been profitable since the second quarter of 2008, with more than half (55%) not profitable in 2009.
A new study by Continental Research surveyed 500 businesses with a turnover of £50K - £1million in April this year, revealing the extent of the impact of recession on UK SMEs. 32% of businesses that had not been in profit since 2008 or earlier predict a return to profitability in early 2010, with 10% not expecting an upturn until 2011 or later. When asked to reflect on the national picture for economic recovery, 32% of respondents thought it would be more than a year before things begin to improve although 24% felt recovery would begin in spring 2010.
Larger organisations, unsurprisingly, are most optimistic, with 38% expecting to return to profitability in the current quarter compared to 31% of smaller enterprises. The research reinforces reports that SMEs are being hit hard by the financial crisis, voicing concerns that this new evidence raises questions about their long term sustainability. For more on this story go to:
http://www.continentalresearch.com/media_centre/press_releases/?ID=132
