Business centres thrive in recession

In a study conducted by The Small Business Research Centre at Kingston University, it was found that the key to remaining resilient to the effects of the recession is to “adapt, survive and thrive.” It is no wonder, then, that the Office Business Center industry continues to experience steady growth despite of the declining economy. Executive suites and virtual offices provide flexibility and cost effectiveness not available with a traditional office lease.

The research was conducted on behalf of Workspace Group, a London provider of serviced office space, industrial units and workshops to small businesses and entrepreneurs. The researchers surveyed 350 companies, all clients of Workspace Group.

These London entrepreneurs have proven savvy and wise in recent times, cutting back expenses where possible, enabling them to spend money where it will deliver the greatest ROI. The report showed that 88% of the clients introduced cost-cutting alternatives while 50% increased their sales effort. These companies were already ahead of the game as clients of an executive suites company, saving themselves overhead costs associated with traditional office leases, and saving on salary costs by using phone answering and administrative services offered by the business center rather than employing full-time secretaries.

In a recent press release, Workspace Group’s Chief Executive Harry Platt said: “The research reveals a remarkable resilience by SMEs and the innate survival instincts of entrepreneurs to adapt and be flexible in their response. It also demonstrates an admirable level of self-belief and determination to survive the recession of the past year. At Workspace Group, five businesses on average expanded every week during the twelve months to June 2009 and we have recorded remarkable levels of activity in the SME sector. By offering flexible leases and terms, we have completed over 1,000 lettings in the last year. Approximately 60% of these lettings were with new customers to Workspace Group, while the remaining number were completed with existing customers, the majority of whom - 62% - expanded their space. Our customers have some uplifting success stories during the past year that buck the downturn.”

David Smallbone, an author of the report, writes: “The current recession represents both a threat and an opportunity for UK businesses. Although limited resources render small firms vulnerable to changes in the business environment, they are able to exert an important influence over their own performance and survival. Small business owners are able to demonstrate resilience although this may impact on longer term business performance.”

Original content from:  http://www.officingtoday.com/index.php?news=319