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Stable economy needed to encourage growth say FSB

The Government must create a stable economy to help small businesses to invest and create jobs, according to the national chairman of the Federation of Small Businesses (FSB)

In a column written for the BBC, John Walker said that the weaknesses in the global economy which emerged during the 2008 credit crunch are still damaging prospects for small businesses.

A recent FSB survey indicated that business confidence was at an all time low in Q4 of 2011. Despite this however, 40% of small firms have strong growth ambitions for the next year.

Mr Walker commented: Much as businesses owners - like their customers - would like lower bills and cheaper petrol, there are other things the government could do to improve the prospects for small businesses.

“Our members tell us their businesses are affected by the same types of problems - too much regulation, limited access to finance which restricts how and when they can grow, and increasing overheads which put a strain on cash flow.”

Many small businesses are also struggling with employment legislation, and over 60% struggle to keep up to date with changing regulation. Government plans to reduce regulation have been welcomed by small businesses - as long as they have a real impact on the running of UK businesses.

“Unless the EU follows suit, the efforts of the UK government will be wasted.” Mr Walker added.

The FSB is also calling for greater recognition of the role micro and small businesses play in the economic recovery, and believes that policymakers need to start thinking of them first.

“The FSB has long campaigned for policymakers to examine whether micro firms need to comply with a proposed law, or whether lighter regimes and exemptions are possible.

“Despite the EU commission accepting this, it still plans to bring forward unnecessary bureaucracy and burdensome proposals.

“So it is up to the UK government to play its role in highlighting and stopping this.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .