Knowledge Centre
2nd December 2009
Small firms are innovating despite the tough financial times, according to a survey billing itself as the most extensive undertaken during the recession.
The annual Voice of Small Business survey of almost 10,000 Federation of Small Businesses (FSB) members found that 53% of small firms introduced new or improved products or services in the last year, with 51% saying that they expect to carry on innovating next year.
Meanwhile, more than a quarter said that their profitability had increased over the last year.
Nevertheless, the FSB renewed its call for a stimulus package on the back of the survey. According to the group, this assistance should include a renewal of the Enterprise Finance Guarantee scheme after its March expiry and a moratorium on tax increases, alongside an employer's National Insurance Contributions freeze and an NI rebate for new jobs in small businesses.
Other suggestions include setting up a bank that would operate through Post Office outlets - something which has recently been at the forefront of the small business agenda.
John Wright, national chairman of the Federation of Small Businesses, said that the renewed stimulus would be essential to allow small businesses to flourish and take their place at the heart of a revitalised economy.
He pointed to the 48% of firms which said that they would be growing their client base next year - and the one in five that stated their intention to take on more staff - saying that the present is "no time to pull the support for this vibrant sector".
"As the UK goes to the polls next year, public debt and unemployment will still be high, and the Government will have to make tough decisions to encourage recovery," Wright warned.
IMAGE Martin Sterba/Czech News Agency/Press Association Images
'Innovating' small firms need continued support, says FSB
The annual Voice of Small Business survey of almost 10,000 Federation of Small Businesses (FSB) members found that 53% of small firms introduced new or improved products or services in the last year, with 51% saying that they expect to carry on innovating next year.
Meanwhile, more than a quarter said that their profitability had increased over the last year.
Nevertheless, the FSB renewed its call for a stimulus package on the back of the survey. According to the group, this assistance should include a renewal of the Enterprise Finance Guarantee scheme after its March expiry and a moratorium on tax increases, alongside an employer's National Insurance Contributions freeze and an NI rebate for new jobs in small businesses.
Other suggestions include setting up a bank that would operate through Post Office outlets - something which has recently been at the forefront of the small business agenda.
John Wright, national chairman of the Federation of Small Businesses, said that the renewed stimulus would be essential to allow small businesses to flourish and take their place at the heart of a revitalised economy.
He pointed to the 48% of firms which said that they would be growing their client base next year - and the one in five that stated their intention to take on more staff - saying that the present is "no time to pull the support for this vibrant sector".
"As the UK goes to the polls next year, public debt and unemployment will still be high, and the Government will have to make tough decisions to encourage recovery," Wright warned.
IMAGE Martin Sterba/Czech News Agency/Press Association Images
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