A South Bristol gift shop, tucked away in a residential corner of Totterdown, is proving that small start-up companies can prosper during the financial downturn.

When setting up Fig.1, in St Lukes Road, two years ago, owners Mark Fletcher and Luke Macfadyen believed firmly that as they lived in Totterdown they should help regenerate the area by starting their business there.

The business partners, who are also in a civil partnership, said they are committed to "keeping things local", supplying quality ethically-sourced goods and services to local people, and supporting the local art scene.

Mark, 32, of Stevens Crescent, said: "We are so new that the business is still growing at the moment despite the credit crunch.

"We are always looking to expand the services we offer people; this includes offering plant advice as well as book ordering services.

"I would also say that the basic idea behind the business – to provide goods which are ethical but also well designed – is a good one despite the credit crunch.

"We have customers who travel across Bristol for us because they can find items that are unusual and different from elsewhere."

The shop, which employs three members of staff, stocks a range of design-led gifts and home goods, and also has an online shop to support the company. Mark, who is also vice chair of this year's Totterdown art trail, said: "This business is built with a local ethos and, thanks to the internet, a national reach."

Luke, 37, owns half the business but works for the NHS as an occupational therapist with people with older adults with dementia.

He is also treasurer of the local residents' association.