New Survey: Small Businesses Predict Recession will Last Two Years

Monday, 19th January 2009 - For Immediate Release

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. However, 20% of SMEs fear the recession will last 3 years or more.

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Chairman:
The Rt Hon Lord Young of Graffham

Founder & CEO:
Duane Jackson

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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.

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.

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. More than half of small businesses are intending to increase marketing spend.

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 turn.”

You can download a white paper with more results of the survey at http://www.kashflow.co.uk/SMEWhitePaper2009.pdf

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About KashFlow

KashFlow is an online tool specifically designed to help owner managers in small businesses manage their accounts. KashFlow’s aim is to take the boredom out of managing a company’s accounts and to make the day to day tasks easier to achieve so that less small businesses neglect this area.

KashFlow keeps accounts management simple: it requires no installation, software training or prior knowledge of accountancy.

All users benefit from a free, no obligation 60-day trial. The monthly subscription price is £15.99 a month - including free support and upgrades.

Contacts

For further editorial information, contact:

Carolyn Gordon-Smith
PR Manager
cgs@cimma.co.uk
01386 859090 / 07710 537 928

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Notes to Editors

In June 2008, KashFlow became the first accounting software package to be certified by PayPal for integration with its payment platform. PayPal and KashFlow now work in partnership to provide a seamless, end-to-end, payment processing and accounting system.

In October 2008 KashFlow won a Business Software Satisfaction award, judged entirely by customer feedback, for the category of small business accounting - beating the likes of Sage 50, Quickbooks Pro and MYOB. Statistics revealed by the awards organisers show that KashFlow has a 70% share of the web-based accounting software market in the UK.

KashFlow has received two rounds of venture capital funding from their now chairman, Lord Young of Graffham. Lord Young is a former Secretary of State for Trade & Industry and ex Chairman of Cable and Wireless

KashFlow is simple to operate, with users instinctively knowing where to click to perform almost any accountancy task

Owner managers are able to effectively manage their accounts with no need for software training or prior knowledge of accountancy

KashFlow has been featured in the likes of the Financial Times, Daily Mail, The Daily Telegraph, The Mail on Sunday, BBC Radio and all the leading accounting titles.

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