More than two thirds of small firms in the West Midlands put coping with the recession as the single biggest challenge facing their business in 2009, but many still plan to invest during this year, according to a new survey among SMEs.

Research conducted by the e-Innovation Centre (e-IC), which is based at the University of Wolverhampton, revealed that only 12 per cent of businesses said they were ‘more confident’ about their outlook compared to six months ago, with 47 per cent saying they were ‘less confident’.

However, the pressurised economy will not stop businesses investing in their companies, as just under half of businesses questioned by the e-IC said they planned to invest in IT-related products, citing their need to become more effective in the marketplace as the main reason for their spending plans.