Falling customer demand is the biggest problem that small businesses faced in the first quarter of 2009, according to a survey conducted by the Open University Business School and the Association of Chartered Certified Accountants (ACCA).

Just under 65% of small companies surveyed reported that falling demand is the biggest issue that they face followed by 25% who sited access to finance and 14% whose biggest problems are with suppliers.

"Compared to the 1991 recession, businesses are now much more concerned about falling demand and are relatively less concerned about the availability of finance. Therefore the government should primarily focus its efforts on stimulating consumer demand," said Professor Robin Jarvis, head of ACCA's small business unit.