Survey unveils resilience of small businesses but economy barrier to growth

In the ‘Voice of Small Business’ Member Survey, 68 per cent of small businesses have introduced new or improved products or services over the past two years – 15 per cent higher than in 2009.

And, 58 per cent of small firms said they are looking to grow over the next 12 months – 43 per cent moderately and 11 per cent rapidly.

Of the 11,000 respondents to the survey, three quarters want to increase their client base, 57 per cent said they expect to increase their online presence and a quarter want to increase their staff base.

However, two thirds said that economy is the biggest barrier in achieving this, 16 per cent say broadband is a barrier, more than a third say employment taxes are a barrier and 13 per cent say recruiting and training is a barrier.

Gordon Millward, regional chairman of the FSB, said: “These figures show that the small business community has remained resilient even in the ongoing tough economic climate.

“The smallest businesses have remained focused on growth and shown tenacity in bringing new products and services to market.

“With businesses confidence at a low, it is not surprising that the state of the economy is seen as the biggest obstacle to achieving growth over the next 12 months.”

Mr Millward added: “The Government must take some big leaps and introduce bold measures to drive growth. In the forthcoming Budget, the Chancellor must ratchet up the growth agenda by simplifying the tax regime, promoting alternative sources of finance and thinking small first when making changes to employment law. Small businesses are committed and resilient, but they now need the Government to match their ambition for growth.”

The FSB aims to protect and promote the interests of the self-employed, and all those who run their own business.