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.