Derbyshire & UK business confidence very fragile for small businesses, FSB reports

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Confidence among small businesses in Derby, Derbyshire and rest of UK has deteriorated over the second quarter of 2010, according to the Federation of Small Businesses' "Voice of Small Business Index".

Only a net four percent of respondents believe that business prospects will improve in the third quarter of the year, down from 16 percent in March.

The survey of 1,200 FSB members also found 67 percent of small firms are operating below capacity, with 64 per cent of firms in the south east likely to be working below capacity more than anywhere else in the country.

"The consensus view from small firms is that the recovery is far from secure and there are significant risks to business growth in the future," said FSB National Chairman John Walker. "With this in mind, as well as the fact that almost 70 per cent of businesses report working under capacity, we encourage the Government to support small businesses to grow and expand."

Walker wants the government to make the National Insurance holiday for new businesses applicable throughout all of Britain and not just in certain regions.

"With small firms in the south east most likely to be working below capacity, this shows how wrong the Government is to not include this vital region, as well as the east and London, in its proposals for a National Insurance holiday for start-up businesses," said Walker,

"While we support the policy we believe that it should be extended to be UK-wide and be available for existing businesses too.

"With 600,000 public sector jobs expected to be lost, stimulating private sector job creation, especially in small firms, will be vital to rebalancing the economy."

The FSB-ICM "Voice of Small Business" survey was carried out between 21 June and 5 July 2010