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Small businesses reveal increased marketing spend

Small businesses reveal increased marketing spend

Small businesses are in bullish mood with 77% predicting sales growth in 2009.

More than 60% of small businesses instead to diversify to survive the recession and small businesses are intending to increase marketing spend.

Throughout December 2008 KashFlow canvassed more than 1800 users on their
opinions about survival and business success in the future.

The results offer a fascinating snapshot of SME concerns and an insight into their resolve to survive the economic downturn.

The survey also discovered that small businesses are committed to retain staff -
more than 80% do not anticipate losing staff through redundancy. In fact, more
than 30% intend to take on new staff.

Most small businesses expect the recession to last about two years.  Small
businesses actually collectively predict the recession to last 1 year and 11
months. Twenty per cent of SMEs fear the recession will last 3 years or more.

More than half of small businesses are anticipating cash flow issues caused by
the recession. Despite anticipated slower payment, more than 60% were not
anticipating delays in paying suppliers themselves.

Duane Jackson managing director of KashFlow who commissioned the report said: "If the UK economy needs inspiration to work its way out of this recession - then it should look no further than the country's SMEs. 

"More than three quarters of them are planning for increased sales despite the economic down turn. They are seeking out new business opportunities, spending more on marketing and employing more staff.

"The dynamic response of SMEs and sheer bloody-mindedness is the approach larger
businesses and financiers should be doing to drag us through the current down

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