Aidan O’Boyle, chairman of the Small Firm’s Association, is claiming that the small business sector is the lifeblood for the future as the small businesses in the country will aid the economic development of the country as well as being able to supply more and more jobs.

O’Boyle stated in the Small Firm’s Association end of year statement that, “Now is the time for Government to recognise the key role which small business plays in our economic and social success and to provide the small business sector with the confidence and supportive environment to ensure future success.”

“While the recent announcements from banks of additional SME finance funds, the promised 10% increase in lending to SMEs as part of the Government’s recapitalisation plan, the forthcoming funds from the European Investment Bank are welcome, it is delivery on the ground that is important,” he claimed.

The Small Firm’s Association have also warned that 2009 will see unemployment rates soar even higher in the small business sector and this rise needs to be controlled.  O’Boyle claims that the Government must put in place a national entrepreneurship policy that should see more young people being able to set up businesses, boosting employment rates and increasing innovation in the market place.

O’Boyle states, “We must ensure that we provide the stimulus to our young people to take up the challenge and risk of setting up in business and, in doing so, provide the jobs and economic output necessary to sustain our future growth.”

The news comes after The Federation of Small Businesses recently stated that 4,500 small businesses were set to close down through 2009 in London alone as the country spirals further and further into a recession.

The Federation also stated that due to the massive amount of business set to close down, the knock on effect will be felt by the employees as 22,000 jobs will be lost in the next year.

The spokesman for the Federation, Stephen Alambritis, claimed that, “We must ensure that we provide the stimulus to our young people to take up the challenge and risk of setting up in business and, in doing so, provide the jobs and economic output necessary to sustain our future growth.”

“Parts of the capital are set to really lose out because of these closures. We may even lose whole high streets that are dotted with these independent shops. Places like Portobello Road, Balham High Street and Clapham High Street rely heavily on small businesses and are going to suffer,” said Alambritis.

The message was highlighted by the chief executive of the British Shops and Stores Association, John Dean, who stated that new businesses were the most at risk in the situation, saying, “It is inevitable there will huge casualties. The worst affected will be the immature firms that are about two or three years old and simply have not had enough time to stabilise.  Once these independent businesses are gone, they are gone for good and it is a tragedy.”

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