FSB: We must not get complacent on unemployment

Commenting on the fall in unemployment by 51,000 to 2.61 million, John Walker, National Chairman, Federation of Small Businesses, said:

“The fall in unemployment to 2.61 million is good news. But we must not get complacent. Our latest research shows that small firms have cut jobs for the 10th consecutive quarter. They do want to grow and take on more employees but are being held back by a lack of credit from the banks and a squeeze on spending.

"Our ‘Voice of Small Business’ Index shows four-in-10 small firms are having their applications for finance turned down and we know that many small firms have missed growth opportunities because they can’t access the money they need. There needs to be alternative sources of finance that small firms can tap into if the nation wants to see unemployment fall further.”

Commenting on the rise in self-employment by 84,000 to 4.7 million, John Walker, National Chairman, said:

“It is great news that more people are taking the leap and going it alone as the record high in self-employment shows. With many people struggling to find work or a full-time job, we should be doing all we can to help those with entrepreneurial spirit to set up in business.

"The Government's New Enterprise Allowance scheme is an excellent idea but needs to be extended if we want to see more budding entrepreneurs turn their ideas and enthusiasm into action."

Ends

Notes to Editors

The FSB is the UK's leading business organisation with around 200,000 members. It exists to protect and promote the interests of the UK’s Real-Life Entrepreneurs who run their own business. More information is available at www.fsb.org.uk

Contacts

Pierre Williams 020 7592 81228 / 07917 628 998 pierre.williams@fsb.org.uk
Prue Watson: 020 7592 8121 / 07825 125 695 prue.watson@fsb.org.uk
Sara Crane: 020 7592 8113 / 07595 067068 sara.crane@fsb.org.uk

For regional FSB contacts please go to www.fsb.org.uk/regions