Only two in five businesses feeling the pinch

Three in five UK-based small and medium-sized businesses (SMEs) have not yet felt any negative impacts of the recession, according to a new study.

The poll by Mr Site and PayPal found that almost two thirds of SMEs have not experienced a downturn in turnover since the recession began.

The most ‘recession proof’ SME sectors were found to be education, manufacturing and public sector.

“This research shows that despite the doom and gloom of the financial climate, small businesses are still finding ways to fight back,” said Mr Site co-founder Beatrice Hatherley.

Two in five businesses surveyed had experienced increased earnings by up to 30 percent in the past year, thanks to the introduction of an online shop.

“With consumers turning to the internet more and more to find deals, it is clear that the small businesses that are surviving are those that give customers what they want,” said Cameron McLean, PayPal’s general manager of UK merchant services.

“In our experience that’s an easy and safe way to shop online.”

Despite the overall positive result, only one in 20 small goods sellers have increased turnover since the start of the recession.

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