smallbusiness.co.uk: Helping your business think big

The Federation of Small Businesses (FSB) has highlighted 2012 as a year in which companies can 'turn things on their head' and expand.

In a New Year statement, the lobbying group points to the Olympics and the Queen's Jubilee as events from which businesses can benefit.

The organisation also believes inflation should begin to decrease, which is expected to have a positive effect on small business overheads and help consumer confidence.  

Exporting is earmarked as an area that small businesses can develop, especially in the vibrant markets in Asia.

However, FSB chairman John Walker says that job creation will be critical in 2012, with unemployment having risen continuously over the past year. 

He says, ''What is most worrying is that certain areas of society are being hit hardest. The number of women out of employment has risen to the highest level since 1988 with 1.1 million women out of work. And young people are also taking the hit with 1.03 million – the highest since records began in 1992.'

Walker also points to the difficulties in small companies accessing bank finance as a potential stumbling block in 2012.

To tackle the problem, the FSB wants to see the Chancellor putting competition in the small business lending market at the heart of a safe and secure banking industry.

Adds Walker, 'He also needs to open up more avenues where small firms, especially start-ups, can access crucial seed finance. By doing so, more small businesses will be able to grow, innovate and take on staff.'