Small business owners, particularly those in the manufacturing sector, are more pessimistic now about the business environment than they have been at any other time since December 2009.
According to the latest Small Firms Association quarterly economic update, while the overall business environment improved slightly in the second three months of this year, the outlook for the next three months is weak.
Inflation, late payments and access to credit were listed as the top concerns for businesses.
The survey found that one in four small businesses is experiencing a decrease in the availability of working capital.
This is backed up by another survey carried out by CPA, or Certified Public Accountants, which shows that almost two-thirds of companies noted an increase in the incidence of credit facilities being reduced or removed altogether.
61% of respondents, all accountants, said they had seen evidence of viable businesses getting into trading difficulties because of a lack of credit from banks.
