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The Department of Trade and Industry is introducing the service to relieve small businesses of the burden of answering unsolicited calls.

But that gesture could backfire as more than half of small businesses questioned in a survey by list manager Marketingfile.com agreed with the statement that the Corporate TPS is "a terrible idea".

Nearly 900 small businesses were questioned in April and May about their views on the service which launches on June 25. Forty-six per cent of respondents said that making unsolicited calls is essential for finding and retaining customers, and more than half believe the legislation will adversely affect their business.

"Smaller businesses realise they must rely on each other to sustain business," Chris Loveys, director at Marketingfile.com, said.

Worringly for the DTI, 70% of respondents said they were not aware of the forthcoming legislation and almost a quarter of respondents said they will not check or cleanse numbers before calling them.

"Smaller businesses are more likely to undertake unsolicited calls if they see a number on a shop sign or a letterhead. And they are less likely to clean their database. I think the legislation will prove to be a double-edged sword for them," Loveys added. Even so, one in six businesses still said they will register with the Corporate TPS.

Marketingfile.com released the survey to coincide with the launch of its new weblink, www.numberchecker.co.uk, a site that allows SMEs to check individual numbers.

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