Entrepreneurs and small business owners are proving resilient in the face of tough economic conditions.

According to the Federation of Small Businesses (FSB), which represents over 215,000 small firms, its members are finding new ways to turn a profit, despite a shrinking credit market and record fuel costs.

Mike Cherry, FSB Financial Affairs Chairman, said: "Small businesses are under severe pressure financially. Credit is drying up, big companies are taking longer to pay their bills and fuel costs are having a massive impact on the bottom lines of businesses in almost every sector".

"But small business owners are made of tough stuff and the size of their operations allows them to be far more flexible and adapt to changing market conditions quickly. Agile entrepreneurs are finding new ways of targeting customers, changing the focus of their output or breaking into new markets altogether".

"Yes the credit crunch is a worry, but it is great to see that small business owners can still find ways of making the best of a tough economic climate."