Over half of small businesses have not been profitable this year, it has been suggested.
Market research agency Continental Research also found that 19 per cent of all small and medium-sized businesses have not been profitable since the second quarter of 2008.
Shiona Davies, the director of the group said that one of the major problems at the moment is "uncertainty".
"One minute we are hearing about green shoots and that there is some evidence of economic confidence returning but then there are also reports saying that it will be months if not years until things pick up," she said.
"The results look pretty pessimistic, with few predicting things will improve this year but whereas some sectors might suffer others may well do alright."
According to the Federation of Small Businesses, most small businesses will be affected negatively by the Budget announced by Alistair Darling, particularly due to the fuel and alcohol duties
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