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FSB finds small business confidence crashed in 2011

Date Added: 17/01/2012  

Firms may be in danger of being served with a winding up order after a poll by the Federation of Small Businesses (FSB) found that there was a crash in confidence at the end of last year.

Factors such as rising inflation - the headline rate pushed above five per cent in the autumn - were said to be to blame for the situation, along with gas and electricity prices going up.

The FSB's Voice of Small Business Index, put together from 1,600 responses from companies across the UK, recorded a score of -24.5, which is the lowest it has been since the scheme was set up in 2010 and represents a drop of 15.2 points over the quarter.

National chairman of the FSB John Walker stated the message from business owners is clear - the situation is going to get worse before it begins to get any better.

"But, we are hopeful that as the inflationary pressures lessen in 2012, that businesses will become more confident. There are some good policy proposals in the pipeline too. However, the government needs to quickly put in place the actions that it has promised," he said.

Mr Walker pointed out small firms are waiting for the coalition to put in place the measures it has announced in order to help them grow and boost the economy as a result.

He called for the Conservative-Liberal Democrat alliance to focus on "creating a dynamic business landscape in which our entrepreneurs can grow and flourish" during 2012.

Research carried out by the FSB earlier in the year found many companies do not believe the UK's hosting of the Olympic Games is going to help them this summer.

Indeed, a quarter of the respondents to the survey claimed they are expecting the sporting event to have a negative impact on their business.

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Posted by Miles Pritchard

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