It’s grim for Small firms across the UK

The victims are putting the blame firmly at the door of the nation’s “lend nothing” banks as they see a crucial sector of the UK economy, that employs 13million people and provides vital services across the country, disappear down the drain. “Small firms are facing a lethal cocktail of rising costs and falling trade,” said Stephen Alambritis of the Federation of Small Businesses which represents 215,000 UK companies employing up to 50 people each. “We are losing many vibrant small businesses that are the mainstay of the UK economy, like the street corner stores that provide vital services for the elderly, the infirm, the single parents, catering for people who can’t do their shopping at supermarkets. “We are going to lose all that for ever unless the banks release more money. The Government has to be stronger with the banks.

“The main culprits are the banks that have been helped out, but are still holding out on giving help to small businesses.” The FSB says the current crop of local branch bank managers across the country are too young to have been faced before with difficult commercial finance decisions. “The average age of a bank manager these days is 44. In the last recession in 1990 they would have been junior bank workers aged only 25,” said Mr Alambritis. “They are frightened by what they currently face. Small businesses are still viable but they don’t want to help.”

Last week the Sunday Express talked to Small businesses across the country – family firms run by people called Small – to see how they are coping with the financial crisis. We found hard-working people frustrated at every turn as they try to make a living. Many of these family businesses have been trading for generations, but said they now have real fears for their future. LOIS SMALL, Physiotherapist: “The costs of running a business are rocketing,” said Lois, 46, who set up her physiothermic clinic in Birmingham 12 years ago.

But she has taken a brave move in a bid to ride out the recession. “It wouldn’t be fair to pass on the extra costs to my loyal customers,” said Lois. “My profits are taking a hit, but this recession can’t last forever and I want to come out at the other end having kept my clientele.” JOHN SMALL, Electrical shop owner: “I’ve seen and survived recessions before but I’ve never experienced one like this,” said John, a 52-year-old father of two, who has been trading in Watford, Hertfordshire, for 30 years.

He is furious at the fat-cat bankers and the bonus culture that he blames for hitting hard-working businessmen like him. “If I got things as wrong as these so-called city slickers I’d be out of business with no prospect of anyone bailing me out. "I fail to see why people who have messed with the economy and put businesses like mine at risk can still qualify for their mega-bonuses. "Bank bosses should be punished for the damage they have caused to the economy, but instead they’re still being rewarded. It defies logic, doesn’t it?”

The takings at John’s shop have plunged, but he is determined to fight to save his business. Fingers crossed, he added: “Word of mouth for good service has kept me going here and hopefully that will continue.” PAUL SMALL, Heating engineer: “I’d definitely think twice about starting up a business today,” said Paul, 47, who runs his firm from his home in Swindon, Wiltshire. “Literally everyone is haggling and price-checking these days as they watch every penny and make sure they are getting the best deal.