Small business bank account owners still feeling recession aftershocks

The vast majority of small business bank account owners in the UK have yet to return to pre-recession profits levels, according to a new survey.

Professional services firm RSM Tenon‘s recently published report entitled Business Barometer found that seven out of ten small business owners are still patiently waiting for their enterprises to return to the profitability levels they enjoyed before the worldwide banking crisis of started in 2007.

After three years of recession, nine per cent of business owners feel that there will be at least an additional three years before their enterprises fully recover.  At 27 per cent, over one in four believe it will take between one to two years to reach a full recovery, and approximately 20 per cent predict that the most realistic timeframe for business recovery lies in the 2 to 3 year range.

The survey of over 300 entrepreneurs from throughout Britain found that approximately 43 per cent of small business owners currently have plans to review their business strategies in the coming year. Additionally RMT Tenon has determined that the number of businesses expected to fail this year will reach 20,000, sure to be a chilling estimate for business owners concerned with their bottom line.

And those business owners are still highly concerned, even in the face of the economic recession “officially” ending; at 22 per cent, over one in five predict that a lack of working capital will become a serious hurdle to overcome over the coming year.
Carl Jackson, RSM Tenon’s current head of recovery, stated that businesses continue to experience very tight margins.  Many business owners have been unable to secure any funding they need in the form of business loans.  Jackson concluded by stating that the level of corporate insolvency to be expected in 2010 will match the last two years’ record totals’.

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