The latest quarterly Federation of Small Business (FSB) report for Q2 2022 found that the majority of small firms expect negative growth in the next year.

Cost pressures and labour shortages are preventing investment plans and hampering economic development.

The combined proportion of small firms who predicted that they will stay the same size (38.7%) or downsize or even close their business (15%), at 55%, outweighed the 47% who predicted they will grow in the next 12 months.

Businesses in the information and communication sector predicted 63% will grow in the next year, compared with only 40% in wholesale and retail firms, and 35% of hospitality sector businesses.