The Federation of Small Businesses (FSB) has welcomed new government proposals, which could lead to job roles for IT contractors.

Reacting to the government's pledge to cut red tape, the FSB says the move will help small firms to expand and grow, therefore taking on more staff.

There are 4.8 million small companies in the UK, and a quarter of those feel that regulatory burden has prevented them from goring the scale of their business, the FSB claims.

Business secretary Vince Cable has promised an immediate review of all new regulations in the pipeline, as well as adopting and "one-in, one-out" policy for future rules.

"Small firms have repeatedly said that the burden of regulation and the time it takes to comply with is just too much and could prevent them from taking on staff - and stunts economic growth," said FSB policy chairman Mike Cherry.

Companies were recently advised by small business advice firm Red Idea that social media marketing can help businesses grow their customer base efficiently.