Before the problems triggered by the US sub-prime mortgage crisis, just 11% of smaller businesses quizzed by the Enterprise Research Team (SERTeam) said the general economic climate was their main business worry, while 6% worried about cashflow and bad debts.

Red tape and, among businesses with 20 or more staff, training, were the key concerns highlighted in the survey.

However, despite the current problems, the report revealed that most small firms were doing well. Apart from retailers and transport and travel firms, all sectors reported a positive annual percentage of sales increases, Business Zone reported.