Bosses of small South-West firms go the extra mile (From Jobs SW)

Bosses of small South-West firms go the extra mile

8:30am Monday 8th February 2010

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SMALL business owners in the South-West are taking the lead to ensure their firms stay afloat despite the recession, new research has found.

The nationwide survey of businesses with a turnover of up to £1million by Santander Business Banking shows that 59% of business owners have frozen their pay in the past year, while just 33% have frozen the pay of staff.

A further 28% have cut their own pay and 7% say they have sold or refinanced personal assets such as houses or cars to raise money for their business.

In contrast, just 5% have cut the pay of staff as part of cost-saving measures, which also demonstrates how reluctant they have been to cut jobs - just 5% say they have had to make staff redundant.

The research shows how tough small businesses have found the downturn – only 19% say they have not had to implement cost-saving measures.

But the study shows that small business owners have in general tried to protect staff where possible with 35% of owners saying they have not taken holidays in order to help their business.

Paula Ickinger, head of business banking marketing at Santander said: “The past year has been hard for small businesses and small business owners have felt the pain with pay freezes and in some cases, even having to take pay cuts.

“It is impressive to see that just one in 20 have had to cut jobs and is a testament to the commitment of business owners that they have, where possible, protected their staff. That should stand them in good stead for the return to growth that is tentatively underway.”

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