SMEs creating jobs 'in 3-6 months'

Recruitment by small firms will begin to outstrip redundancies within the next three-to-six months, according to the Forum of Private Business (FPB).

And, in contrast to research released earlier this week, the FPB says that its members are "cautiously optimistic" about the future, as the economic recovery gains pace.

The findings come from a survey conducted by the federation in the first two weeks of September, in which 28% of small business owners said that they expected to increase their sales and turnover in the next three months, with many looking to grow through concerted sales and marketing activities.

Almost 40% of the smallest firms said that they were looking to introduce a new product or service to help develop their business.

Less than a third (28%) of small and medium enterprises (SMEs) said that they had no need for advice or guidance. For those who did, the most commonly-cited reasons why support was not easily available were the time and bureaucracy involved (16%), cost (15%) and problems with banks (15%).

Firms were particularly critical of their banks, with only 4% saying that their access to working capital had improved in 2009. Some 77% of businesses reported that the terms on which they could lend had worsened in the last year.

One member responded that "finance is not forthcoming at realistic rates" and that "support monies [could not be] easily accessed".

Another bemoaned: "[It's] hard to find where and when to get it; nobody seems to know if support is available."

IMAGE Martin Rickett/PA Wire