BANK RATE reductions should be passed on as quickly as possible to give small businesses the best chance of survival in the economic downturn.
That is one of the top demands from a "wish-list" unveiled at a major international small business conference taking place in Belfast this week. The conference brings together policymakers and business experts from 70 countries to discuss how the credit crunch is impacting small- to medium-sized enterprises.
More than 1,000 people are expected to attend both the International Small Business Congress and the Institute for Small Business and Entrepreneurship conferences which are running in parallel in Belfast this week.
It is the first time in its 38-year history that the business congress has been held in the North and its "wish-list" issued to global financial institutions and governments reflects the key concerns now shared by small businesses worldwide.
It contains suggestions that banks should maintain current overdraft limits and bank borrowing arrangements for small firms for at least two years.
It also recommends there should be no interest rates on current borrowings for small- to medium-sized enterprises.
Prof Ken O'Neill, lecturer in enterprise and small business development at the University of Ulster, who was instrumental in attracting the conferences to Northern Ireland, said they aim to address key issues such as how best to foster entrepreneurial spirit internationally and support existing small- to medium-sized enterprises.
"Small- to medium-sized firms are the lifeblood of many of our economies, playing a vital role economically, socially and politically.
"Many see a thriving small- to medium-sized firms sector as essential to a functioning democracy," said Prof O'Neill.
The conferences take place against the backdrop of a severely declining economy in the North and growing pressures on its small- to medium-sized firms.
New research to be published today by PricewaterhouseCoopers (PwC) suggests that unemployment will rise to 6 per cent in Northern Ireland while growth will fall to 0.3 per cent in 2009.
PwC believes that an immediate 0.5 per cent cut in UK interest rates is essential to help Northern Ireland households and boost flagging business confidence.
