How are Britain's small business entrepreneurs leading the country out of the recession? Research by The Open University Business School suggests that innovative enterprises have performed best among Britain's five million small businesses throughout the economic downturn. Young entrepreneurs and students in the West Midlands are recorded attending their first ever business networking event. We also hear how business innovation is sprouting on the site of Europe's largest former car factory at Longbridge in Birmingham and look at the support offered to budding entrepreneurs via Aston University’s Innovation Voucher Scheme. The challenges facing Mike Clarke, Managing Director of IT firm, Aura Q during the recession are considered, and we discuss small business confidence with Mike Ashton, Chief Executive of Hereford & Worcester Chamber of Commerce. The research is discussed by Colin Gray, Emeritus Professor of Enterprise Development at The Open University.