Aviva: 56% of SMEs divide to survive

According to supplemental research by Aviva over half of SMEs (small and medium-sized enterprises) set up embarked upon a diversification strategy to enhance their chances of surviving the dip.

Broadening the product/service range, weekend opening, lengthening opening hours and widening the person base are all common steps that have been taken by SMEs to prove and shore up their position.

Less popular options include reducing headcount, lowering recompense and offering new discounts.

Only one in 50 of those surveyed confirmed they had requested endorse from one of the Government’s business assistance programmes.

Worryingly the depression is causing some businesses to take risks, with 12% going without commercial indemnity.

Commercial Product Manager David Bruce has said that the large stage of diversification of Britain’s SMEs is a sign of versatility and adjustability, but went on to express concern that some firms may be active without the legally required employers liability insurance and this means operating illegally.

In August Aviva offered suggestions to surety brokers on how best to weather the recession, advising them to be keen to customer needs and to foster strong business relationships.