Nearly all small firms in the UK expect the economy to remain stagnant for at least two years, it has been revealed.
Research by Baker Tilly shows that 98 per cent of respondents do not expect a recovery until 2010 at the earliest, something which might interest business insurance customers.
The study also found that three-quarters of businessmen (78 per cent) believe that next year will be worse than 2008.
Mark Harwood, audit partner at the firm, said: "Overall, indications are that, whilst there has been a decrease in confidence since April, the expected recession will be relatively short, although recovery to 2007 rates of growth may be slow."
The fact that consumers will be hit by inflation, falling house prices and lower confidence means that there will be "casualties" in the corporate sector, he added.
Last week, the Federation of Small Businesses called on the government to set up a £1 billion fund to help firms survive the economic downturn.
