A Bath business expert is claiming 2013 will be a tough year for enterprises in the city.
Insolvency expert Neil Vinnicombe, from Bath-based Begbies Traynor, has said businesses in the region are facing a difficult year.
His prediction comes as high street chain Jessops became the first casualty for 2013 and announced it had gone into administration, closely followed by HMV.
Mr Vinnicombe believes the only businesses to thrive will be the ones built around the "new normal" rather than waiting for the economy recover.
He said:"Just as it took us ten to 15 years to get into this mess, it is going to take another ten to 15 years to get ourselves out of it People and businesses have got into a mindset of spending based on cheap credit and are waiting for those days to return.
"Without a major catalyst, there is no reason to expect those days to return at all, which is why the economy won't change significantly for a few years yet."
Mr Vinnicombe said some sectors, such as pubs and high street retailers, would continue to struggle as they adjusted to the fact that there was long-term oversupply in places such as Bath.
He said: "There are probably still too many pubs and shops across the South West. Unfortunately these businesses will continue closing until we reach equilibrium.
"In other sectors, there are a lot of zombie companies out there at the moment, not failing but only just surviving. Equally, there are a lot of families who are working part- time just to make ends meet.
"With rising energy costs and food prices increasing, those families are going to see their incomes squeezed even further in 2013 and for a lot of businesses, things might get worse before they get better.
"The economy needs a new generation to come through, a generation that recognises the current situation as the new normal and works on that basis rather than planning for the day that growth returns."