Enfield small businesses still feeling force of recession, says survey (From This Is Local London)

Enfield small businesses still feeling force of recession, says survey

2:47pm Friday 19th March 2010 in

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SMALL businesses in Enfield are feeling the force of the recession more severely than last year, a survey has revealed.

Some 66 per cent of small and medium-sized enterprises (SMEs) in the borough said they felt affected by the downturn, compared to 64 per cent in October 2009.

The survey, by the business support and advice service Business Link, questioned 93 Enfield SMEs about this year's first quarter as part of its quarterly London-wide Business Confidence Index.

Benjamin Smart, regional manager at Business Link in London, said: “A recovering economy does not mean Enfield’s small businesses are out of the woods.

"Recovery on the business front generally takes longer to manifest itself and the borough’s entrepreneurs need to remain on their toes in the months ahead to ensure they’re on track.”

However, while 57 per cent of Enfield’s SMEs are experiencing a decline in profits compared to 45 per cent in October 2009, 41 per cent said they were "significantly or extremely" optimistic.

In response to the current business climate, Enfield’s entrepreneurs are predominantly refocusing on their core products and services - 65 per cent - and cutting costs or making redundancies - 51 per cent.

Ninety-four per cent said they are not planning to lay off any staff in the next twelve months, up from 91 per cent in October.

Other findings showed that while fewer Enfield SMEs have experienced cashflow constraints compared to the last survey, there has been a decrease in the number looking to grow.

Mr Smart added: “Now more than ever, Enfield’s SMEs must ensure they have a robust business plan in place to stand them in good stead for the year ahead."

To view the full survey results visit the Business Link in London website at www.businesslink.gov.uk/london/bci.