FSB says small business see’s no hope of improvement this year

A survey that included 1,200 members of the FSB showed that only four percent expect that its trading prospects will improve during the third quarter of 2010, which is much less than the 16% that believed there would be an increase in the third quarter in March.

The FSB survey suggested that it may still be quite some time before recovery is complete according to a statement from the group which means that the Government still needs to encourage SMEs to hire more staff and grow.

FSB national chairman, John Walker, stated that it is expected that 600,000 public sector jobs will be lost which will stimulate the need for new private sector jobs and even more so within small firms in order for the economy to get rebalanced.

In response to this problem, the FSB is asking for new businesses to be given National Insurance Contributions holiday and extend it to companies and businesses located across the UK.

Walker stated that the policy is supported by the FSB; they simply believe that it should help out existing businesses and be applicable across the UK.

The scheme lets new start-up businesses avoid the £5,000 fee of national insurance payments for the first ten employees that they hire within their first year of trading.  It does not currently include businesses that are located in London, the south east, and the east.

Senior economist Charles Davis who helped produce the FSB report stated that the SME community seems to feel that a strong recovery is still far away and there are present business risks to growth in the future.