Conditions for business insurance customers wanting to launch a new venture are still promising, an expert has suggested.
Dennis Handel-Sam, partnership manager at advice and support service Business Link, claimed that a rise in unemployment has caused an increase in people looking to use their retirement money to begin a new company.
He commented: "The start-up environment is very vibrant, people are trying to start up more and more. A lot of people have been made redundant and they can use their redundancy money to start-up."
In contrast, Mr Handel-Sam pointed out that many established business insurance holders are being forced to reduce their costs in a bid to survive the current recessionary conditions.
However, the expert pointed out that both new and old business insurance holders will find it necessary to maintain healthy cashflow if they expect to make it through the economic downturn.
Recently, Marc Barber, editor of smallbusiness.co.uk, said that this year will remain difficult for firms, recommending that they reduce costs and avoid aggressive activities which could place them at risk.
