Risk to IT contractor jobs as small business struggles

Risk to IT contractor jobs as small business struggles
Small businesses need help from the government or many will go under, taking job opportunities for IT contractors with them, it has been claimed.

According to the latest Red Flag report from Begbies Traynor, there was a 14 per cent increase in the number of small firms facing financial distress in the first quarter of 2010, when compared with the last of 2009.

It is now up to the government to do all it can to ensure that companies stay afloat, from providing tax breaks to better access to finance, claims the Federation of Small Businesses (FSB).

Although the FSB's own survey found that 30 per cent of its members expected things to get better in the next quarter, the pressure group claims that risks cannot be taken with the health of small business.

John Walker, national chairman of the FSB, said: "[We are] concerned that small businesses supplying to larger businesses could go to the wall.

"The FSB urges the next government to look at ways to help small firms stay afloat."
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