More bosses freeze their own pay to beat recession

More than one in four bosses cut their pay in the face of the recession, while some sold or refinanced their cars or houses to raise money for their businesses, a study by Santander Business Banking of 300 small businesses showed.

Most of those surveyed said they introduced cost-saving measures and more than a third did not have a holiday last year.

Paula Ickinger, head of business banking marketing at Santander, said: "The past year has been hard for small businesses and owners have felt the pain with pay freezes and in some cases, even having to take pay cuts.

"It is impressive to see that just one in 20 have had to cut jobs and is a testament to the commitment of business owners that they have, where possible, protected their staff.

"That should stand them in good stead for the return to growth that is tentatively under way."

One in seven (14 per cent) of small businesses said they have increased bank borrowing during the down turn, while 32 per cent have put plans for business expansion on hold.

Around 41 per cent of small businesses have renegotiated deals or changed suppliers, while 26 per cent have not updated machinery or vehicles as originally planned, according to Santander.

Around 14 per cent have sold or refinanced business assets, such as premises, to raise cash.