Small firms treading carefully in 2010

UK  Small businesses are wary about the economic climate, it has been revealed, with less than a third  expecting  things to improve this year.

The annual Voice of Small Business survey, conducted by the Federation of Small Businesses and ICM Research, found just under half (48 per cent) of respondents experienced a drop in sales last year. Thirteen per cent of businesses saw revenue decline by more than 10 per cent, while 14 per cent saw turnover plummet by more than a fifth.

It wasn’t all bad news for small business however, with three in 10 companies managing to grow their top line, and almost half of those posting increases of more than 10 per cent. Sales remained flat for 16 per cent of firms last year.

Around a third of firms are feeling optimistic,  with 28 per cent of firms claiming the business climate will improve this year. A deterioration is expected by 22 per cent, while 46 per cent believe trading conditions will remain stable.

Firms in Wales and Northern Ireland are particularly downbeat. Just 21 per cent of Welsh respondents expect the business climate to improve this year, while 29 per cent of Northern Irish firms expect conditions to deteriorate.

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