Owners worried their businesses will shrink

MORE small business owners expect their firm will shrink, shut or be bought over next year than predict a year of growth - for the first time in at least 15 years.

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According to a poll by the Federation of Small Businesses (FSB), 27% of bosses believe their company will downsize, be sold or shuttered entirely in the next 12 months, compared with just 25% who believe their firm will expand.

The finding from the industry body's quarterly sentiment survey is the first time pessimism outweighed optimism among business owners since the study started in 2010.

Overall, the FSB's headline confidence measure dropped to -44 points in the second quarter of this year, from -41 points in the first quarter as firms adjusted to the twin hikes to employers' national insurance contributions and minimum wage.