SMES 'won't throw in the towel'

Nearly all of the UK's small businesses have vowed to beat the recession, a survey has revealed.

Conducted by Orange SMS Business Jury, a poll found that only 2% of British small to medium enterprises (SMEs) said they were considering "throwing in the towel" and going insolvent.

This is despite 43% admitting that they were suffering from higher operating costs and 27% reporting that they had recorded a downturn in revenue.

Martin Lyne, director of small and medium enterprise at Orange Business Services, said: "We are encouraged that the owners and managers of businesses are not giving up."

"We need to help businesses innovate and get through the hard times, so that in turn that can help bring the British economy back onto an even keel."

To counteract impending recession, one fifth of SMEs said they would put expansion plans on hold, while one seventh said they planned to raise their prices.

Research last month also found that only one in every five small businesses had contingency plans in the event of a severe downturn in business.