Finding the right people to work for your company is even more important when you run a small business. But recruiting and retaining staff can feel like an uphill struggle if your budget is limited and you're competing with multinational companies.

Frances Wilson, Human Resources Adviser at the Chartered Institute of Personnel and Development, says small firms should make use of local contacts to spot talented staff. Local newspaper adverts usually produce a good response and often attract candidates that big companies miss.

'Small companies should emulate the best practice of larger companies, whilst at the same time trying to be more creative and inventive,' she says.

Building links with local schools, colleges and universities will raise your profile. By offering a student work experience you're giving them a chance to get to know your firm and they will be more likely to return once they're qualified. Your chamber of commerce, Business Link (the Government's one-stop advice centre) and other networks may be able to suggest who to approach if you're looking for certain skills.

Further afield

It's essential to have a website. Young people expect to see one and it will give you the chance to tell them why you're better than a larger employee. You can show pictures of your creche, the beautiful courtyard where you hold meetings or your rooftop gym. A website gives you a worldwide shop window.

If you can't find the staff locally widen your search:

• Avoid the South East. Look at areas such as the North East and Wales where unemployment is higher
• Consider overseas markets. In parts of Central Europe young staff are willing to work for less that top wages in return for the experience of a job in the UK. National Academic Recognition Information Centres offer advice in comparing qualifications from overseas applicants
• Approach students at newer universities

Keeping staff

You may not be able to offer fat salaries but your strengths as a small business are your flexibility and sense of community. Once you've recruited someone use these two advantages to hold on to them.