The latest unemployment statistics for Lincoln stand at 5.4% whereas in the same month 7 years ago they were at under half the amount at 2.6%.
In Lincoln the recession has hit just as hard as all over the UK and small businesses around the city are suffering.
Anne Lawlor who owns a small shop called Salamander said “Times are hard fro everyone, but for me as a small business owner, it is especially difficult to make a living.
“I’m just lucky I am doing something I love on a regular basis.”
Another small business owner Mary Allen said: “Because of the recession this shop almost closed down while I was just an employee. Luckily I cobbled together the money in the 11th hour to save it and now, here we are. Surviving.”
With worries about a double dip recession looming the outlook for small business owners remains bleak at the moment.
Economist David Gray said: “It’s a hard time for everyone at the moment. The emphasis has to be on saving money, wherever possible.”
Our reporter John Fernandez has more on how the recession is affecting small businesses.