SME’s struggle to avoid redundancies

Britain’s small businesses are facing an uphill battle to keep their staff in the wake of Britain’s unemployment costs, that reach up to £350m, and the highest number of households without all members employed in ten years.

A new study by Close Invoice Finance surveyed 500 entrepreneurs, and found that 68% think they will be able to keep most of their employees over the next year, with only 7% worried they would have to make employees redundant.

CEO of Close Invoice Finance, David Thomson, said that even though the recession is affecting Britons, it is uplifting to see that the backbone of the British economy, small businesses, are managing to retain their employees in the face of difficulties.

At the same time, a different study by The Small Business Finance Barometer, showed that only 15.3% of all SMEs expect that their company will be able to expand over the next year.

Managing director of ANS Group Paul Sweeney said that he was able to get 12 new people on board over the last two months, and that the company is expected to recruit more in the coming months, with double the revenue, which is at least inspiring to struggling SMEs who are panicked in the face of the recession.