Survey: Small firms will cut more staff
May 19 2009
Small businesses plan to reduce wages, bonuses and staff numbers in the next three months as they continue to struggle to access finance and cope with the recession.
According to research from accountancy group Tenon, of 300 business owners, 13 per cent intend to reduce salaries, while a quarter will reduce their headcount.
The research also found budget cutting is occurring, with 22 per cent reducing research and development spend, while 30 per cent are dropping money allocated to public relations and marketing.
Andy Raynor, chief executive of Tenon, says: 'Cost control, rather than government initiatives, is the recurrent theme for protecting businesses with up to a third of businesses looking for further savings.'
Companies are still finding it difficult to access money, with a third saying it has gotten harder.
However, 40 per cent of entrepreneurs questioned are confident about the future, stating demand is stabilising and they expect it to grow in the coming months.
The research backs up findings released by Continental Research last week, which found half of small businesses in the UK have not made a profit so far this year.
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