Chairman of Fife Federation of Small Businesses (FSB) David Chalmers conducted the investigation, sending questionnaires to about 250 small businesses in the Kingdom.

Pre-festive trading for 43 per cent of small businesses who answered was worse than in 2006.

Other concerning figures revealed 35 per cent believed their profits were down on previous years and 13 per cent made a loss.

Mr Chalmers said: "It does not make good reading, and quite obviously small businesses with only one or two local outlets will suffer more than large businesses with branches nationwide, which can offset losses in some branches against profits in others.

"It also shows how fragile the business market is, with only around a quarter of the responders stating business was better and more profitable than 2006.

"If town centre regeneration is to mean anything at all, the local authority must do a lot more to encourage people to shop locally in Fife, because, and– I repeat my message again – if there is no footfall, there are no shops."

He believes apart from the 'credit crunch', the fear of a slow down of economic growth in the UK, Fife Council needs to do more to help small businesses.

The message from the FSB is to stop increasing parking charges, putting down more yellow lines and making life evermore difficult for Fife's shoppers.

Mr Chalmers believes these measures are frightening people away from the Kingdom's town centres, to the detriment of businesses of all sizes.
Across the country, the Scottish Retail Consortium have noted many enterprises have experienced a difficult Christmas, with like-for-like sales in December only 0.4 per cent higher than in 2006.

• Read the full story plus traders' views on page seven of this week's Fife Free Press.