Small companies ‘failing to make profit’

Over half of the UK's small firms have not made a profit in the opening months of 2009, according to new research.


Over half of the UK’s small firms have not made a profit in the opening months of 2009, according to new research.

Over half of the UK’s small firms have not made a profit in the opening months of 2009, according to new research.

A study carried out by Continental Research reveals that 55 per cent of small businesses have not been profitable so far this year, while 19 per cent have failed to see a return since the second quarter of 2008 or earlier.

In addition, the survey finds that a ‘disturbing’ ten per cent have not generated a profit since the last three months of 2007.

Of the small companies which have not made a profit since 2008, 57 per cent are optimistic and predict they will see returns by the last quarter of this year.

However, 32 per cent believe they will have to wait until the opening three months of 2010, while ten per cent are not anticipating recovery until 2011 or later.

Shiona Davies, director of Continental Research, comments: ‘These figures endorse a plethora of anecdotal evidence we read every day: times are tough for small and medium-sized business and the smaller the business the tougher it is.’

Davies also claims that the main problem facing small firms is the uncertainty over the future of the economy, with some commentators noting ‘green shoots’ of recovery and others predicting this will not occur for months or years.

She points out that these conflicting viewpoints make it difficult for companies to plan their business activities.

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