Small businesses could beat the credit crunch, it has been claimed today.
The statement comes from Richard Roberts, head of small and medium sized enterprises (SMEs) research for Barclays Bank.
Mr Roberts claimed SMEs are "far better placed" to deal with the current economic climate than business owners were during previous recessions, thanks to prudent management and less debts.
He said: "If we accept that the sector is in fairly good financial shape, 'closures in financial distress' will remain much lower than in the early 1990s."
But, the bank also warned small businesses regarding the credit crunch, admitting research shows the overall amount of firm closures in England and Wales will continue to beat the number of start-ups.
This trend could see the stock of SMEs fall by 150,000 over the next two years.
Meanwhile, research carried out by Cambridge University claims banks are "taking a tougher line over small business finance", reports the Daily Telegraph.
