Despite the economic downturn, around half of all respondents in this year’s Business Perception Survey feel the recession will benefit their businesses in the long term. 

Despite the economic downturn, around half of all respondents in this year’s Business Perception Survey feel the recession will benefit their businesses in the long term.

Corporates that have responded quickly to tough market conditions will be leaner and fitter and better placed to take advantage of new markets and products than less efficient rivals, says accountancy firm Baker Tilly, which conducted the survey.

The findings also revealed that the recession has presented entrepreneurs with opportunities to benefit from merger and acquisition activity, with over a quarter of SMEs stating that they were on the acquisition trail and looking to do a deal within the next 12 months.

The survey, which collates the opinions of senior financial directors of SME companies, provides evidence that, despite an optimism for dealmaking opportunities, only companies with a strong, long-term business plan will emerge from the recession unscathed.

Senior FDs of SMEs identified the lack of available bank credit and a reduction in the availability of credit insurance as major concerns. The restricted availability of bank finance was of concern to only 23 per cent of businesses six months ago – this has now risen to 35 per cent. In addition, 60 per cent of respondents said that late payment of invoices was impacting on their company’s liquidity.

Laurence Longe, national managing partner at Baker Tilly, said “Leaner, fitter business models will be able to grasp the post-recession landscape when their less efficient competition has fallen by the wayside. However, times are still tough and many businesses are struggling – companies must not rest on their laurels.