Five per cent of small businesses surveyed said they do not expect to struggle on beyond 2021.
One in five small businesses made staff redundant between October and December last year. One in seven expect to do so before April.
And the cohort expecting profits to fall in the first quarter this year hit an all-time high, with exporters having to deal with EU red tape as the UK-EU trade deal shakes down.
Mike Cherry, chairman of the FSB, said that although small business has welcomed the Covid help lifelines thrown to the retail, hospitality and leisure sectors, the government must realise that the small community is wider than that.
Nothing has been done for company directors, the newly self-employed and those who do not use commercial premises, Mr Cherry said.
Mr Cherry added: “The development of business support measures has not kept pace with intensifying restrictions. As a result, we risk losing hundreds of thousands of great, ultimately viable small businesses this year, at huge cost to local communities and individual livelihoods.