Small businesses weather crunch

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Small business report issued

A new study suggests that small businesses in London are weathering the economic storm better than in other parts of the UK.

But the independent survey of 3,000 businesses conducted for BT reports an overall growing level of worry.

In London, 56% of small business owners are concerned about rising costs, compared with 70% across the UK.

BT Business said despite fears, the unit had 7,000 inquiries last week from potential small business start-ups.

Bill Murphy, of BT Business, said: "That's an amazing figure if you think about what we are all reading about and seeing on the television every day."

Boosting entrepreneurs

Mr Murphy said the study was timed to coincide with Small Business Week in the UK and to highlight the need for support for entrepreneurs.

"We need to help as many businesses as we can to best meet the current challenges so they are ready for the upturn when it comes," he said.

The study found:

• Slightly fewer London businesses, 47%, said they felt they have been adversely affected by the current climate, compared with 50% across the UK.

• Fifty-six percent of London businesses are finding it more expensive to run a business today than three years ago, compared with a national average of 67%.

• Considerably more London-based smaller firms, 23%, have increased their international trade in the last three years, compared with 14% nationally.