Small businesses power recovery!

Small businesses will lead the way in creating more jobs and reducing unemployment this year, a report by recruitment firm Michael Page says. The results of it’s survey of 4,000 clients, show that almost half of small businesses plan to increase staff numbers, compared with 37pc of bigger employers and that around 60pc of small businesses see professional services staff as their recruitment priority.

 

Anther positive economic indicator for small businesses published last week, came from Begbies Traynor, the accountants and restucturing specialists, who said the number of companies in critical financial distress continued to reduce in the third quarter  and also noted an improvement in business confidence and growth in start-ups.

 

The EY Item Club of forecasters, however, predicts that the 7pc unemployment rate trigger for an increase in interest rates is likely to be reached this year and warns that any increase should be linked to real growth in wages and not just a reduction in unemployment and still believes that greater business investment and exports are required before the recovery can be considered sustainable and a rate rise should be considered.

 

Posted by John Hoskin