A Government-funded business advice group has been attacked in a report which suggests thousands of small firms do not know it exists.

Business Link is criticised in a document called Lifting The Barriers To Growth In UK Small Businesses, published by the Federation of Small Businesses (FSB).

The report shows just 19 per cent of the 3,699 South-East businesses who responded to a survey had used Business Link services in the past 12 months.

The FSB said the service, which, among other things, organises training seminars and gives advice on legislation and exporting, had to change if it was serious about helping small firms.

Sussex Enterprise, one of the chambers of commerce which runs Business Link, strongly rebuked the claim. It said its activities had a "direct and measurable impact on the local economy".

The FSB survey claims only seven per cent of businesses were happy with the service Business Link was offering, compared to 69 per cent who were happy with their accountants.

More than 30 per cent said they were unaware Business Links existed, more than 25 per cent said it was "inappropriate" for their business and 15 per cent said they were unclear what the group was offering.

Roger House, FSB South-East policy unit chairman, said: "Since the first of the FSB biennial surveys was published in 2000, we have consistently received reports of the low levels of usage of Business Link services by small businesses.

"If Business Link is serious about wanting to engage small firms in training then it has to take notice of the reasons identified by businesses which lead to non-usage of Business Link services.

"In particular it should address, as a matter of priority, the criticism that all too frequently the service offered was inappropriate for their business."

David Rowland, director of business services at Sussex Enterprise, said Business Link had worked with more than 20,000 Sussex firms and 94 per cent of them were happy with the service they received.

He said: "Businesses that use Business Link services in Sussex come back to us time and time again as their business develops and their needs change.

"Our activity supporting businesses has a direct and measurable impact on the local economy. Businesses we work with increase their sales, productivity and profitability significantly more on average than other businesses.

"The results of the FSB report are very useful and we will be looking at how we can make better contacts with the micro-businesses that the FSB represents through our links with the local enterprise agencies."

Thursday July 29, 2004