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| SMEs 'must not take financial risks after the recession' |
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| Latest Recruitment News - HR and Recruitment Legislation News |
| Written by DirectNews Feed |
| Monday, 04 October 2010 00:00 |
 Small and medium-sized enterprises (SMEs) have been warned not to take unnecessary financial risks now that the UK's economy is officially back in a period of expansion.According to insurance company RSA - which specialises in products for SMEs - the positivity in the sector, caused by the International Monetary Fund's recent announcement that the country appears to be recovering from the effects of the recession, should not be jeopardised by such firms taking measures such as cutting their insurance cover. Research conducted by RSA found that some 41 per cent of all companies in Britain have become more frugal over the course of the downturn, but the firm is concerned that over-confidence could now emerge in the sector. David Greaves, SME trading director at RSA, commented: "We are calling on small businesses to implement appropriate risk management practices and ensure they are adequately protected." Meanwhile, Edward Rimmer of Bibby Financial Services said recently that SMEs in the UK are struggling to secure finance due to a stand-off between the government and banks following the recession. Posted by Daniel Frost 
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