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Graduates who choose to work for small businesses can expect to be given significant responsibility and rapid progression opportunities, one employment expert has advised.

Dan Hawes, co-founder and communications director of the Graduate Recruit Bureau, acknowledged that small business graduate recruitment remains a "hidden job market" because of a lack of resources.

He said: "[Small businesses] don't advertise widely, they don't have time to go to careers fairs.

"It's tough for them to find graduates, and likewise it's tough for graduates to find them."

However, he emphasised that such firms offer university leavers certain benefits that large companies tend not to provide.

Mr Hawes explained that smaller salaries are often offset by "greater involvement, earlier responsibility, quicker promotion opportunities and great progression".

He continued: "If you're joining a growing company…they want managers of the future, and if you do well then you're going to grow with the organisation.

"That's where it can outweigh the initial lower financial benefit, later down the line - you can exceed what you'd get in a bigger firm in the same time frame."

According to a report from management consultancy Hay Group the average graduate salary in 2007 is £20,812, up 2.5 per cent from 2006.