2012 could be a good year for small businesses

UK businesses have the ideal opportunity to improve their lot in 2012 as major events such as the Queen's Diamond Jubilee and the Olympics thrust us into the global limelight. The FSB believes that inflation will decrease and small businesses will be under less financial pressure when it comes to meeting their overheads as well as benefiting from increased consumer confidence.

Small businesses will also be able to expand their export trade into vibrant Asian markets.

However, Walker warns that UK businesses must create jobs this year. 2011 saw a steady rise in the number of people out of work and that trend must be reversed in 2012. He pointed out that the rise in unemployment is hitting certain areas very hard. 1.1 million women are now without jobs, the highest since 1988. Young people are faring just as badly with a record 1.03 million out of work.

Small businesses also face problems accessing finance again this year and Walker wants to see the Government introduce more competition into the small business lending market.

Furthermore, the Chancellor should open up more routes whereby start-ups and new firms can get the finance they need to commence and grow their business operations. If entrepreneurs can access the finance they need, more small firms will be able to expand, innovate and increase their headcounts, he added.

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Image: A New Beginning by Shermeee