O2 has this week released its Small Business Confidence Index, which details the findings of a survey of nearly 3000 small business owners.  The results reveal a bleak retrospect of 2009, which saw staff suffer the consequences of "streamlined operations" necessary to keep companies afloat.  According to those surveyed, this streamlining entailed renegotiating payment with suppliers, cutting staff, making pay cuts and freezes and offering employees unpaid holiday.  39% of small business owners reported that they had made staff redundant during the year.

All this paints a dark picture of the situation faced by staff in 2009, and one which is painfully familiar for those who have been made unemployed by these cuts.  However, O2's survey has also served to demonstrate the benefits this will generate over the coming year. On the cusp of the New Year, 32% of business owners profess to feeling more confident and over a third anticipate increased profits for the next quarter, although many predict 'V' shaped progress - a slump in early 2010 followed by dramatic improvement.

In anticipation of this, many employers have ploughed the savings they've made into technological investments and almost two thirds claim they are already reaping the benefits of this decision.  They report that new technology facilitates better communication with customers and suppliers and allows for greater staff flexibility.  66% of small business owners plan to continue these investments and almost a fifth expect to increase expenditure.  New technology has helped reduce overheads by enabling staff to work remotely, which eliminates the need for a costly physical work environment.

It also fits conveniently with a trend recognised by 12% of those surveyed of increasing interest from overseas thanks to the currently weak pound.  This new interest could prove to be the making of many small companies which - instead of being damaged by the recession - will emerge as successful international businesses. So, by making cuts in 2009, it seems that a large number of small businesses have defended themselves against the recession and - against all odds - are now set to emerge from it stronger.  With new international business and an increased capacity for remote workers there are real employment prospects emerging for 2010.

To see the full results of the survey visit: http://mediacentre.o2.co.uk/content/Detail.aspx?ReleaseID=599