Another Recession- Time for Small Businesses to Panic?
Yesterday confirmed the news that most people in business already knew, the UK economy is in a double-dip recession. No great surprise if we’re all honest, our main fear is that it is not a long, deep and drawn out affair. It’s worth pointing out that the last 2 quarters have seen the economy shrink by 0.3% in the 4th quarter of last year and by 0.2% in the first quarter of this year.
Ok, so technically it is a recession (2 quarters in a row) but so far it is not comparable to 2008 and 2009 where we were looking at contraction of 2% and even 2.3% in the 4th quarter of 2008. My point here is that we all expected the UK economy to dip in and out of contraction, but it is still borderline, in fact the most recent figures could still change (admittedly yes they could go up or down) as they will be revised at least twice in the next month or so.
What does it mean to small businesses?
Well, unless you are in the construction industry, probably not a lot or it’s probably better to say no change, the economy has more or less flatlined for the past year. What have we experienced here at Connect? no real change I guess- we still have a steady flow of new telephone answering clients and yes we do see the occasional loss of clients as they go out of business but nowhere near the scale to which we saw back in 2008.
One benefit for a company like Connect is that as some businesses feel the need to cut back, they still need their phone calls answered and for many it is far more attractive to outsource than to employ a receptionist in-house. That said, no one wants the economy to be in the position it is and hopefully this double-dip recession will be over before the Olympics start (strangely a lot of our clients always use the service that little bit more when the football, tennis or Olympics is on!)
NJ Walker- 26/04/12