Twice-yearly research by the Small Business Research Trust and Natwest bank shows that red tape is no longer small firms' top gripe, although few firms said that the problem had eased.
Official statistics show that UK economic growth nearly stalled in the first quarter of the year, reaching just 0.1% between January and March.
The survey was undertaken in April, just after these statistics were published. It also coincided with the US-led war in Iraq, which caused international trade and business confidence to plummet.
Just over one in five small businesses said they worried most about the economy, compared with only 13% six months before. Previously it had been mainly micro-firms - with fewer than 10 staff - who were troubled.
