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FSB: Small businesses struggling over Christmas

Empty wallet

Firms are struggling with the ongoing effects of the economic slowdown, according to the Federation of Small Businesses (FSB).

Those running small businesses are struggling to cope with the ongoing effects of the credit crunch, it has been suggested.

In recent days, the Federation of Small Businesses (FSB) expressed its concern that small firms in rural areas are becoming the "silent victims" of the turbulence in the economic environment.

A survey of nearly 500 FSB members whose enterprises are based in rural regions saw nearly 60 per cent say they expected their trade over the Christmas period to be down on this time last year.

The organisation has called for a number of measures in order to help firms in pastoral areas, which it states could also provide a stimulus to villages and towns across the country.

Among the proposals are free parking in rural areas over the festive period and ensuring a significant proportion of the £7 billion made available by the government for small companies is promoted to businesses in non-urban environments.

John Wright, national chairman of the FSB, said: "Rural businesses are as integral to the wellbeing of our economy as the turkey is to our festive dinner ... If rural firms are not supported now, we could watch our markets, high streets, towns and villages become extinct."

In other news, the federation recently published a report it had commissioned, which suggested that the smallest businesses are the "best employers", but they are deterred from taking on staff by the burden of increased regulation.

The study, which was conducted by the University of Westminster, suggested that small firms employ more previously long-term unemployed individuals than medium-sized or large companies.

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