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Diversification key to survival

Over half of the UK’s small and medium-sized enterprises have taken steps to diversify their business in order to survive the recession, according to new research by insurance group Aviva.

Diversification through new products or services, opening at weekends, trading for longer hours and targeting new customer groups were the most common actions taken by SMEs to weather the economic storm.

Additional promotions and increased discounts, reducing staff pay, benefits and/or hours and reducing the number of permanent staff employed were other frequent actions taken by SME owners.

“Britain’s small business community remains entrepreneurial, creative and opportunist at heart, with an innate ability to be both flexible and versatile,” says David Bruce, commercial product manager at Aviva. “The ability to anticipate and adapt to the changing environment is key for any successful business, and business owners are clearly leading the way in this regard.”

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