Business body hits back at Sugar

The Federation of Small Businesses has defended struggling small firms from criticism by the government's enterprise champion, Lord Sugar.

On Tuesday, Lord Sugar described struggling small companies as "moaners" living in "Disney World".

But the FSB said that small companies "lie at the heart of our economy", adding they were "working hard in difficult times".

Lord Sugar made his comments at a small business event in Manchester.

"I can honestly say a lot of problems you hear from people who are moaning are from companies I wouldn't lend a penny to," he said.

"They are bust, the moaners are bust."

"They are bust and they don't need the bank - they need an insolvency practitioner."

Formerly Sir Alan Sugar, he was made a Lord earlier this year so that he could join the government.

RELATED INTERNET LINKS
Federation of Small Businesses
The BBC is not responsible for the content of external internet sites