the business ladder

Increased pressure on profit margins and the New Year VAT rise have been identified as the main concerns for small businesses in 2011.

A survey of 500 small and medium sized enterprises (SMEs) by TheCityUK revealed that 43% of those interviewed view reduced margins and profitability key issues, with 17% seeing it as a key risk to their business in the coming year.

The rise in VAT was a concern for 39% of those surveyed, with 15% seeing it as one of the main risks. Reductions in cash flow were identified as a concern by 36% of respondents.

TheCityUK CEO, Chris Cummings, commented: "There’s no doubt that 2011 poses significant challenges for small businesses which are the backbone of the national economy and employ over 13 million people."

"Business has pressing concerns that must be heard if the private sector is to create the jobs and opportunities needed to take up the challenge of generating real growth and make sure the UK remains globally competitive."

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