City set for key role in restoring economy; Business Today in association with www.fsb.org.uk/093.

SMALL and medium sized enterprises (SMEs) in Coventry will play a key role in restoring the UK's economy, according to new research.

A survey by KDB has found that shareholder-directors of small businesses will drive economic recovery, with SMEs in Coventry securing the 20th spot, out of 120, on the table of entrepreneurial vigour.

The study also revealed the Midlands to be one of four regions outside London as being most likely to provide the engine room of economic recovery.

Matt Boot, chief analyst at KDB, said: "Recovery from the current economic slowdown will require wealth creation and strong leadership from companies large and small.

"Large firms, which employ ranks of clever economists to factor in cyclical changes such as that we are experiencing now, have no doubt predicted the current tough times, even if they might not have foreseen its severity.

"However, large companies, with more than 500 employees represent only 41 per cent of the country's turnover. The rest is delivered by smaller businesses.

"In fact, firms with fewer than 100 employees represent 43 per cent of the nation's turnover - two percentage points higher than large companies.

"Therefore, economists looking beyond the current troubled times towards a period of recovery will be very interested in where the most dynamic, wealth-creating firms are likely to be located in the country."