SMEs call for recession busting advice
SMALL and medium-sized enterprises in Yorkshire want more support to help them beat the downturn, with almost half predicting the effects of the recession to be tougher than anticipated.
Research by Lloyds TSB Commercial, which has set up an SME support service following its research, reveals that more than a third (35%) are asking for further guidance to combat trading problems.
The report, based on the responses of 500 UK firms with an annual turnover of up to £15m, including 52 in Yorkshire, shows that two thirds (67%) of SMEs want further guidance on keeping costs down; 60% need advice on attracting customers; and almost half (47%) say they need help planning for the prospect of a prolonged recession.
The report also shows that customer demand (58%) and retaining clients (46%) are the main concerns for small businesses, as they prepare for further economic uncertainty.
These issues are followed by late payments from clients (39%), rising costs of raw materials (31%) and paying staff wages (27%).
However, Lloyds TSB said that businesses in Yorkshire have been taking action to combat these concerns and reduce their exposure to the downturn:
– More than a quarter (29%) of businesses surveyed have reduced staff numbers or reduced hours for employees,
– One in four (27%) have cut prices of services and/or goods,
– More than one in 10 (14%) of businesses have implemented pay freezes for staff,
– One in five (19%) has revised payment terms with customers, requesting advance payment for goods or services.
Small firms also said they were keen to drive advertising activity over the next 12 months to attract new customers and make cost savings such as reducing staff numbers and implemtenting pay freezes.
Following the report, Lloyds TSB has launched a programme of expert help and advice, including providing businesses with online guidance and information, to help SMEs survive the recession.
The programme includes a series of 120 nationwide business advice seminars. Five events have already taken place in Yorkshire, in Huddersfield, Wakefield, Sheffield, York and Hull, which brought together almost 750 local businesses to hear specialist advice from Lloyds TSB and independent experts.
In addition, the bank has launched a free advice website – www.lloydstsb.com/businesssupport – covering topics such as how to cut fixed monthly costs, how to get a better deal from suppliers, and how to retarget a business for changing times.
Martin Humberstone, area director of Lloyds TSB Commercial in West Yorkshire, said: “Businesses in Yorkshire are going through an extremely tough trading period and many have already made some difficult decisions to help mitigate the impact of the recession. But, as the economy continues to falter, it is critical that local businesses get the support they need.”
