Source Marketing Direct welcomes the recent news that the UK economy avoided a triple-dip recession with a growth of 0.3% in Quarter 1 of 2013. The marketing and sales firm believe that small businesses will help the economy recover further over the next year.
The UK economy was at risk of heading into its third recession in four years, according to research by BDO accountants. The economy grew in the third quarter of 2012, but contracted by 0.3% in the final quarter. Speculations of the triple-dip recession were due to concerns of the economy contracting for another quarter, meeting the technical criteria for a recession of six months of falling output. Source Marketing Direct reports that the small growth between January and March was enough to stop the economy falling back into recession. “The possibility of a triple-dip recession was a big concern in the media, in part due to the negative effects the cold weather in Quarter 1 had on the retail and hospitality sectors. The growth we have observed is encouraging, and although the economy has a long way to recover, I don’t believe Britain will sink further into a recession. Both consumers and businesses are far savvier than they were 4 years ago. Better risk analysis strategies have been implemented and the nation as a whole is beginning to spend again,” stated Hector Montalvo, Managing Director of Source Marketing Direct.
Source Marketing Direct is based in London and provides outsourced event marketing services for national clients. The firm considers small businesses to be the key to the country’s future economic recovery. The Federation of Small Businesses states that small and medium-sized enterprises (SMEs) account for 99.9% of all private sector businesses in the UK and 59% of private sector employment. Small businesses alone – those with less than 50 employees – account for 47% of private sector employment and 34% of turnover. London in particular is a hub for small business, with over 800,000 private sector businesses in the capital. “Small businesses are the lifeline of a successful economy,” says Hector Montalvo of Source Marketing Direct. “They make up a vast proportion of private businesses and provide more jobs than large companies. If we look towards emerging economies like India and Brazil, their growth is driven by entrepreneurship – small businesses drive economic growth by creating competition, which drives standards and trade opportunities. I think the only way for the UK to recover the economy back to pre-2008 standards is by supporting small businesses. Implementing measures such as reducing corporation tax for small businesses and improving access to finance for start-ups would be a great move.”
Source Marketing Direct is among Britain’s SMEs that have grown throughout the economic downturn. They currently have representation in 5 UK markets and are researching further expansion by July 2013.