The vast majority (67%) of small businesses expect to see a reduction in turnover in 2009 but a sizeable minority (21%) say the economic downturn is having no effect on their business or that business is booming.
Four out of five companies admit they have been feeling the effects of the slowdown for some time and 22% say it has already had a significant negative impact on their business.
Even more worryingly, 7% believe they are likely to go out of business in the next six months and a further 30% think this will happen by Autumn 2009.
Across the country, 66% of small businesses expect profits to fall in the next six months and 43% say they will reduce staffing levels as a result. The cuts are most likely to occur in retail, construction, manufacturing and catering.
The research also revealed that many small business owners (62%) have never faced a slowdown before and six out of 10 had not planned for such an eventuality. Just 35% of those aged between 25 and 34 had made preparations.
But the survey, by communications headset manufacturer Plantronics, also identified a breed of ‘Super SMEs' that were three times more likely to have planned for a downturn and had maintained investment in areas such as IT, marketing and training.
Of this group, 47% had increased spend on IT, 43% on marketing and 39% on training in the last 12 months.
"During times of economic uncertainty small firms tend to view investment in IT, staff training and marketing as luxuries instead of necessities," says Paul Clark, general manager of Plantronics.
"This research shows Super SMEs bucking convention and investing wisely in some or all of these areas are the most confident about the future and better placed to operate in the changing marketplace.
"With the right approach to forward planning, investment in the right technology, staff training and marketing, it is possible to survive tough times."
