A survey by a Haywards Heath business finance firm suggests 2003 could be a bumper year for small and medium-sized enterprises (SMEs).

Metropolitan Factors surveyed more than 100 small and medium-sized businesses in Sussex and the findings indicate they expect to be even more profitable in 2003.

More than 80 per cent said they anticipate their business will be more successful than in 2002.

Fifty-two per cent of respondents also confirmed they intend to increase staffing levels in 2003 and 46 per cent expect to maintain their current head count.

Only two per cent of Sussex firms surveyed said they intend to make redundancies this year.

David Thomson, Metropolitan Factors' managing director, said: "This is great news for the Sussex economy.

Perhaps the best news of all is that the vast majority of jobs seem to be safe.

"There are several reasons for the optimism -

increased demand for products and services, improved cash flow, fewer bad debts and expansion into new markets."

However, the survey also suggested Sussex businesses do not feel they are getting enough support from the current government.

More than 90 per cent of the firms think it is less supportive of small businesses than the Conservative Government under John Major.

They blame the current government for an increase in red tape, such as form filling and complicated legislation, increased business rates and a general lack of understanding about the pressures and challenges facing SMEs.

Mr Thomson said: "The fact that the base rate has been comparatively low this year has helped many Sussex firms to grow and the feel-good factor among the general public resulted in strong retail sales. Substantial house price increases must also have played a part.

"My only concern is that the Government may increase the base rate this year, which could have a negative impact on the economy generally."