'Action needed' for UK's rural enterprises

Date: 9th April 2009

Action is required by the government to save the UK's rural small business community, it has been stressed.

A survey by the Federation of Small Businesses (FSB) has shown that more than 80 per cent of this sector has seen an increase in costs, while almost half have experienced a fall in trade since the onset of the economic crisis.

Considering this, many of these enterprises have likely turned to their accountant for support on issues such as cashflow and business liquidity.

Rural affairs chairman at the FSB, Linda Walton, said: "Rural businesses have been quietly suffering during these testing times just as much as big, city businesses - but behind the dramatic headlines of big business failures."

She added that the failure of one small business in a town or village could have a "devastating impact on an entire community".

Despite the grim figures, recent research from uSwitchforBusiness.com showed that over three-quarters of small firms were confident they would survive the recession.