17/02/2009 - Recession hits small London firms
Small London companies have been hit hardest by the recession compared with other areas of the country, researchers reveal.
According to the survey by the Open University Business School for the Finance & Leasing Association (FLA) there is a new north-south divide.
A total of 71% of the capital's small and medium-sized enterprises (SMEs) saw dropping or standstill sales in the last three months of 2008, while 23% of London's small companies cut jobs.
The survey of nearly 1,300 firms in England, Scotland and Wales found small businesses in the South East, South West, East Anglia and the West Midlands also did badly, suffering falling or stagnant sales.
Stephen Sklaroff, director general of the FLA, a trade association for the asset, consumer and motor finance sectors, said: "The financial crisis in the City of London may well have contributed to the clearest north-south divide for some time."
After the economic climate SMEs consider cashflow, payments and their debtors to be their biggest problems.
Copyright © Press Association 2009
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