Small firms in the UK are facing the recession head on, with the majority planning to spend more on marketing in order to increase sales, according to a survey of 1,300 small firms by accounting software specialist KashFlow.
Bristol, UK, March 03, 2009 — In the face of economic hardship, small firms are increasing the amount they spend on marketing in order to boost sales, according to a new survey.
Small firms in the UK are facing the recession head on, with the majority planning to spend more on marketing in order to increase sales, according to a survey of 1,300 small firms by accounting software specialist KashFlow.
Specialist SME website Marketing Donut has analysed the results and they show that small businesses are in bullish mood. Three-quarters of small businesses are predicting sales growth in 2009 and more than half plan to spend more on marketing.
Small firms are also prepared to change what they sell in order to achieve sales growth. According to the survey, more than 60 per cent of small businesses intend to diversify to survive the recession.
In difficult trading conditions, small businesses are proving to be both proactive and flexible.
It’s a winning combination, says Ray Jones, head of communication at the Chartered Institute of Marketing (CIM) and expert contributor to Marketing Donut. “Much like retailers who instinctively put umbrellas out when it rains, businesses with a good research-based understanding of their customers should be able to identify what they want when times are economically hard,” he says.
The positive approach being shown by SMEs is not blind optimism. The survey shows that small business owners believe that the recession will last about two years and 20 per cent fear it may last three years or more.
Small firms are taking the lead when it comes to recovery, according to Duane Jackson, managing director of KashFlow. “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. They are seeking out new business opportunities, spending more on marketing and employing more staff.”
Jackson continues: “The dynamic response of SMEs and sheer bloody-mindedness is the approach larger businesses and financiers should be taking to drag us through the current downturn.”
Marketing experts explain how small firms can survive and thrive in a recession http://marketingdonutblog.co.uk/category/experts/
Read the survey in full at www.kashflow.co.uk/SMEWhitePaper2009.pdf
Become a Marketing Donut expert http://marketingdonutblog.co.uk/join/
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