SMALL firms believe this year's London Olympics will be a damp squib for the sector, according to research from the Federation of Small Businesses (FSB).
Despite Prime Minister David Cameron promising a lasting impact from the Games, six out of 10 small firms questioned by the FSB believe the Olympics will have no long-term benefits for their businesses.
Just 7% expect the event to benefit their business overall, while a quarter forecast that they would have a negative impact.
The FSB said the Government and Olympics authorities must act to ensure that small firms are aware of how they can reap the rewards on offer from the Games and the increased tourism associated with them.
FSB national chairman John Walker said: “It is worrying that 200 days before the Olympic and Paralympic Games are set to begin, small businesses think it will not benefit their business.
“This is even more worrying considering the London 2012 Games was sold on the basis of its legacy. We all know times are tough, but 2012 is a year of big events that small firms should be able to benefit from.
“The Government and Olympic authorities must help show small businesses how they can reap the rewards from one of the biggest sporting and tourism events the country has seen for years.”
However, a number of North East firms have already benefited from Olympic-related work. Construction, retail, transport, communications, professional services, law and clothing supply businesses have secured work via the procurement support service Compete North East.
Last month, it reminded firms that there are still Olympic-related contracts up for grabs.
Paul Taylor, head of business engagement at Compete North East, said: “In 2011 we’ve helped North East businesses secure around £41m worth of contracts. Many of these have been associated with London 2012.
“There are still plenty of opportunities to be an Olympic winner and secure a significant contract, particularly around the torch relay and football matches being played in Newcastle.
“Aside from the Olympics there is a steady pipeline of other contracts available to businesses in our region, both public and private sector.”
