Small firms plan to retain staff

Despite rising unemployment 68% of small and medium-sized companies expect to retain staff over the next year, according to research from Close Invoice Finance.

The research revealed that despite the challenging economic climate the vast majority of small firms plan to retain their workforce and only 7% of firms plan to cut staff in 2009.

"It is very pleasing to see that small businesses, the engine room of the British economy, are showing their strength and loyalty to employees. In these challenging times, the availability of a skilled workforce is fundamental in order to thrive," said David Thomson, chief executive of Close Invoice Finance.

The survey also showed that small companies are cautiously optimistic about the future with over 15% expecting to expand before the end of the year and only 20% still feeling concerned about securing their cash flow.