The number of small firms going out of business has levelled off, according to new figures.
A survey by Barclays Local Business found that although 101,000 firms went out of business in the second quarter of the year, the worst seems to be coming to an end.
Nic Bayley, head of products at the organisation, said: "A lot of the fall has already occurred. We believe most of the downward adjustment will have occurred by the end of the year."
According to Mr Bayley, the small business sector is "financially prepared" to survive the economic downturn.
The figures also reveal that for the same period around 106,000 new firms opened their doors, the most start ups since the second quarter of 2007.
Yesterday, the British Bankers' Association claimed that small firms are still able to access funding despite the credit crunch.
According to research by the body, lending to SMEs increased to £42 billion the year to June 2008.
