The findings come from business adviser, MacIntyre Hudson, which also found 28% of SME owners think the downturn will delay their retirement by up to five years. Eight out of ten small business owners say they are worried about business conditions over the next year, and only 15% of owner-managers expect their working hours will reduce if the downturn persists.
Atul Karita, principal at MacIntyre, said: "While costs must be kept under control, it is important to avoid downsizing in such a panic that the availability to deliver is compromised. Those businesses which can most effectively manage this delicate balancing act will be best placed when the upturn eventually comes."
Three quarters of businesses are imposing stricter controls on spending and 30% are reducing staff numbers.
SME staff working harder but earning less
A third of entrepreneurs are finding themselves working longer hours, yet 27% of SME owners expect their personal earnings to decrease.