NFEA: Slowdown may not affect all sectors

An economic slowdown may affect certain geographic regions, as opposed to specific business sectors, the National Federation of Enterprise Agencies (NFEA) has suggested.

George Derbyshire, NFEA chief executive, says the credit crunch is likely to affect businesses with "exposure to the property market, such as developers and estate agents.

"If we see a reduction in employment [such as in the City] there will be widespread knock-on effects on businesses in that locality," he explains.

Mr Derbyshire adds that small businesses selling clothing essentials, groceries and DIY items should not be badly affected by a slowdown.

However, the NFEA predicts that travel companies, restaurants and the entertainment industry may "suffer" over the coming year.

The NFEA is holding a credit crunch awareness week at the end of this month, offering financial advice to small business owners through a series of seminars, workshops and mentoring sessions.

For Small Business advice please click here