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The British Chambers of Commerce (BCC) has claimed that both recruitment and wider economic growth will only be sustainable if small and medium-sized enterprises are given plenty of central government support.
In its Quarterly Economic Survey, the BCC said that without the right backing, the coming year could prove problematic for small firms.
Director-general of the BCC David Frost said: "The results of the Quarterly Economic Survey show our economy faces a difficult year and that the recovery will be choppy.
"While the government has listened to calls to help the private sector create growth, there is more to be done in giving businesses greater confidence."
Although he welcomed many of the proposals outlined in chancellor George Osborne's Budget, Mr Frost noted that the government needs to flesh out its policies for growth if they are going to be used effectively by business.
Recently, the BBC called on the government to push ahead with its budget deficit measures.
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