Shropshire in Business: Calculated risk will bring fortunes boost

But perhaps that's just what is necessary to drag the economy back on track.

While the halls of the public sector are emptying at a rate of knots, the number of new businesses being launched all over the country is smashing records on all sides.

Telford and Shrewsbury both saw their highest increase in new businesses in the towns, with 603 businesses formed in Telford and 660 in Shrewsbury throughout the year.

But investing in business, taking a small business and daring to grow is another matter.

"I wouldn't say many people would be making themselves into multi-millionaires in the next two or three years," said Ray Hickinbottom, vice chairman of the Shropshire branch of the

Federation of Small Businesses, who sees signs of 'cautious optimism' hanging in the air among start-ups and small firms.

"We are certainly seeing an increase in the number of people taking things one step further. A lot of businesses are being very cautious and are doing well, but don't want to spend a lot of money in case it doesn't last.

"History has always proved that the entrepreneur that will take the chance is the one that will get the rewards. We are not going to see the growth that the country needs to get us back on course as somebody needs to be taking some chances.

"In one respect, though, I do understand why they are not willing to do it, because of what has happened since 2008 and knowing the amount of businesses that have had a problem, gone to the banks and been refused help. They want the cash behind them before they will do anything."

After last month's budget saw a £2,000 cut in national insurance contributions to encourage employment, Mr Hickinbottom said he expected to see greater employment in the small business sector later this year.

"Last year was a record year for businesses being set up in Telford, and that's very pleasing," he said.

"I don't think the changes to national insurance have quite sunk in yet with a lot of smaller business, though. It's something that the FSB has been campaigning for for years."

What do you think? E-mail us at starmail@shropshirestar.co.uk. Tomorrow: Motor industry