Small businesses show resilience

Small businesses appear to be showing resilience to the mounting pressures of operating in today's financial climate.

The latest research from the Federation of Small Businesses (FSB) revealed that 68 per cent of small businesses have introduced new or improved products and services over the course of the past two years.

This is a 15 per cent rise on the same figure for 2009, while 58 per cent are looking at further growth over the next 12 months. The majority of firms surveyed also indicated that they want to increase their client base and improve their online presence.

John Walker, national chairman of the FSB, commented: "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."

Despite this optimism, it appears that the economy is still proving problematic, with two thirds of those surveyed stating that it is their biggest barrier to growth. A further 16 per cent cited broadband as an issue, while 36 per cent complained about employment taxes and 13 per cent struggled with recruiting and training.

Mr Walker urged government to use the upcoming Budget to work on as many of these issues as possible.