Small businesses are starting to adopt flexible and homeworking policies in a bid to cut costs and avoid having to make staff redundant, according to a survey by Vanson Bourne.
The research found that 47% of small firms have considered implementing a flexible working policy as a means of reducing overheads in challenging conditions while the same number felt under more pressure from employees to allow them to work flexibly.
"All businesses need to take stock and revise their plans and strategy to continue to be competitive, and that means streamlining operations, reducing costs and increasing productivity," said James Caan, owner of private equity firm Hamilton Bradshaw and a judge on BBC's Dragons' Den.
"In my experience, mobile working has an extremely positive impact, not just in terms of the performance and productivity of my team, but also in attracting and retaining excellent people," he added.
"Mobile technology allows me to keep in touch with their progress and also means that I am always available should they need support or advice."
But the research, carried out on behalf of T-Mobile, also found that many business owners feel they are not adequately supported in terms of the technology packages available to them.
Fewer than half (49%) felt their communications contracts gave them flexibility to react to the current economy despite the fact that 84% felt technology would become more important in a recession.
"Things are going to become increasingly difficult for many smaller businesses and it's imperative that suppliers work with them to ensure that they can continue to grow," said Gordon Ballantyne, director of service and sales at T-Mobile UK.
"Businesses should be looking for a simple, understandable price plan from mobile communications providers and ensuring they get the specific advice that they require."
"The UK has enjoyed 15 years of successive growth but this is now coming to an end," added Graeme Leach, chief economist of The IoD. "Many small firms will have never experienced recession before and so the risk of under or over-reacting to the downturn will be high. Life is going to get a lot harder before it gets better."
