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People who are self employed and run their own business know that confidence is everything – and it seems that more small business people are confident of a light at the end of the tunnel.

According to uSwitch.com, 42% of small business people are seeing some signs of economic recovery – but only 1% say the signs are strong – this is an increase from when the website last surveyed UK entrepreneurs, but the majority are still worried about their future.

But, while the Government statistics are telling us that Britain is still in a recession that is likely to be longer and deeper than originally feared, the findings reveal a small increase in the number of small businesses confident that they will survive, says the website.

The survey says small business owners expect the recession to have a long lasting impact: incredibly, 32% say it will only take up to six months to recover with 14% of these saying it will take them no time at all to get back on their feet.

Earlier in the year, cutting costs was the biggest issue for small business and this remains the case today with 58% of companies actively looking for ways to cut back. However, 35% are now experiencing cashflow concerns, a growing problem for those who cannot get hold of credit from the banks.

Jake Ridge, small business expert at uSwitch.com says: "Despite having the odds stacked against them, Britain's SMEs have battled to stay afloat and to survive the recession. It has meant making tough decisions and inevitably most small businesses have felt some pain, whether having to lay off staff, find ways to cut costs or learning to combat cashflow concerns.

"Small business owners are not feeling complacent though – 43% can see signs of recovery but they know they are not out of the woods yet. They are continuing to keep a tight lid on costs and know that the next challenge comes at the end of the recession when they begin the task of building their businesses back up again."

SOURCE: ONS Q3 UK GDP statistics, uSwitch.com, 08/11/09

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