Cash is king for business insurance holders during the economic downturn, an expert and commentator asserts.
David Kern, chief economist at the British Chambers of Commerce (BCC), states that the financial situation provides people with both opportunities and risks.
He suggests that effective action could lead to business insurance holders not only surviving the recession but benefiting from the opportunities it presents them.
The economist warns that these companies must remain cautious throughout the period as it presents risks for firms which allow their cash reserves to be depleted.
Mr Kern states: "The businesses that are surviving in a recession require good management and recessions are a great test for management."
The BCC Quarterly Economic Survey shows that deterioration is taking place in the manufacturing sector, with exports reaching ten year lows.
It suggests that the service sector remains weak compared to historical performance, although the pace of decline in this industry appears to be falling.
