Abstract

The UK has recently experienced the worst recession since the 1930s. Despite the severity of this recent recession, there are currently few studies of its effect on small and medium-sized enterprises (SMEs). However, small business growth and entrepreneurship are recognised as essential drivers for economic recovery (Matlay, 2012; Rae, 2010). Drawing on an online bi-monthly survey of SMEs in Lincolnshire and Rutland, this paper explores owner managers’ perceptions of the UK recession. We examine the views of businesses on various aspects of the recession, and how this has affected business performance, levels of confidence, and growth ambitions. The paper explores the role of business confidence in the economy as a determinant of business growth intentions, and draws a comparison between perceptions and behaviour.