Capital’s small businesses plan to grow in recession

The overwhelming majority of small businesses in London expect to grow over the coming year despite the tough economic conditions.

A survey by the Business Link in London organisation of 3000 small companies found 84% were planning on expanding, despite nearly two thirds admitting the recession was affecting their businesses.

Patrick Elliot, chief executive of the organisation run by the London Development Agency, said: "We're seeing a clear trend emerge of a sector that is refusing to get bogged down in the doom and gloom." Of those looking to grow their firms, most planned to do this by diversifying into new products and territories.

The types of business most affected by the recession were retail, warehousing and construction firms, while those least affected were health and beauty, business services and IT or telecoms firms.

For the first time, the study looked at how ethnic groups were bearing up. Black, Asian and minority ethnic owners with start-up companies were suffering the most, while white, female British Londoners were faring best. However, ethnic minority start-up entrepreneurs remained the most optimistic about growing.