Online firms beating recession

Online firms in the UK weathered the recession, but concerns remained about the level of consumer demand this year, according to a new report today.

Online firms weathered the recession, but concerns remained about the level of consumer demand this year, according to a new report today.

A survey of more than 700 businesses which trade online showed that seven out of 10 met their sales targets last year, although one in 10 said they found it difficult to cope with the effects of the economic downturn.

The number of firms struggling with access to finance halved, and fears of inflation eased over the past year, according to the study by internet giant eBay.

Almost half of those questioned expressed concerns about consumer demand, while 55% complained that supply costs were a barrier to growth.

Mark Lewis, managing director of eBay, said: "While the past 12 months have proved difficult, these online businesses have bucked many economic trends. They have been forced to adapt to succeed, and the flexibility that e-commerce provides means that most have risen to the challenge and emerged stronger and more confident.

"While these latest findings show that we are not out of the woods yet, online firms have proved their ability to prosper despite tough conditions."