Small firms cut back on hiring as credit squeeze tightens
Mon, 18 Jun 2012
Confidence among small firms is waning, with more companies firing than hiring for the 10th consecutive month, according to the latest quarterly survey by the Federation of Small Businesses.
The largest drop in confidence over the quarter came in the property market and the financial services sectors – both critical to London's fortunes. The only sectors where confidence grew were health and social work.
The survey also found that four in 10 small firms have been refused credit.
However, despite the credit squeeze, more than 50% of respondents said they still plan to grow their businesses over the coming 12 months. But the proportion of firms looking to grow rapidly shrank from 10.9% in Q1 to 7.2% in Q2.