Warning corporate belt-tightening could hamper recovery

Its report “Business of Recovery”, which questioned over 2,100 small businesses and 30 business and economic experts, concluded companies surviving the downturn will emerge in a fitter state due to restricting cash flows and reducing costs. However, if the trend for parsimony becomes too entrenched, with companies cost-cutting at the expense of investment, economic recovery may be hampered. Currently, only 15% of UK-based companies are seeking external investment, while 80% of businesses report they ‘don't need money' due to belt tightening and utilising their own resources. A surp...