A new study shows that about half of all small businesses have managed to stay profitable in the face of the recession. The report comes in the wake of recent criticism from Lord Sugar, who stated that small companies that are struggling are simply ‘moaners.’
According to the study, which was completed by Kingston University, most small businesses have been able to get through the recession by using their own cash instead of loans and financing options from banks.
The results also showed that out of 343 firms surveyed, only about 25% of the SMEs saw their profits fall significantly.
The new finding is said to be a direct contradiction to the common thought that SMEs suffered considerably during the downtown. The study also showed that most SMEs that survived did so with the use of their owners own credit cards and savings accounts.
This proved that SME business owners were forcibly able to adapt to meet the new business conditions and terms of the past year.
The comments from Lord Sugar, the enterprise champion of the Government, in Manchester last week, publicly stated that many of the SMEs that are whining about poor financing opportunities are companies that even he would not loan to.