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Recession Effects on New Equipment Investment in SMEs (March 2010)

Researchers Andrew McCann and Colin Gray found that the net proportion of small firms that have invested in their businesses has remained negative for the past 15 months. Sixteen percent of small firms – especially hotels, restaurants and wholesalers are reporting the lack of new equipment is having an adverse impact on their performance and to a small number of firms is posing a risk to the survivability of the business. Over one-third of firms (particularly the smallest) have no need for new equipment, while many of the rest have been able to continue to replace the equipment needed in their business, despite the recession.

This supplement, based on the findings from the first Quarter 2010 of the Quarterly Survey of Small Business in Britain was sponsored by the Finance and Leasing Association (FLA).

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