A recent Federation of Small Businesses (FSB) report has revealed that business confidence amongst SMEs has reached a three-year high.
The Small Business Index, which is the FSB’s quarterly measure of confidence, showed that confidence reached 15.9 points in the second quarter, which is 9.6 points higher than the start of 2013, as well as being the second highest reading since 2010.
According to the FSB’s findings, more firms reported that they expect turnover to increase within the next three months and more predict that the next 12 months will result in their business growing.
The report also found that it was the financial services firms that were the highest in terms of terms of confidence levels.
John Allan, National Chairman, Federation of Small Businesses, said of the findings, “After five consecutive quarters of year-on-year growth, confidence is moving in the right direction. Small firms want to employ more people and grow their business. They want to export and expect turnover levels to increase.
“This is all good news, but we must not be complacent. The Chancellor must use the Spending Review to build on this optimism. While there are positive signs, inflation and not being able to access finance will affect how quickly, and how much, small firms can grow and create jobs.
“We know inflation is likely to remain high for the coming 12 months, largely due to rising energy costs. This is why reform of the sector is so important and why it must provide transparency for small firms to choose the best tariff for them.”
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