According to the Federation of Small Business (FSB), small business confidence is positive after six consecutive quarters of a negative economic outlook. This is sparking hopes for a brighter 2024 for small businesses.
As part of its quarterly Small Business Index (SBI) for Q1 2024, FSB surveyed 967 small business owners and sole traders between 25 March and 8 April 2024. The results show positive signs for small businesses despite continued pressures.
The index found that confidence shot up by over 20 points to reach +5.5 points in the first quarter months of 2024. Notably, almost all sectors saw confidence growth. Manufacturing saw the is the most positive with +19.2 points while the industry with the lowest outlook was accommodation and food services. Although the outlook is still negative for those in accommodation and food services the industry did see the largest confidence jump when compared to the previous quarter.
The only industry that saw confidence decrease was the communications sector. However, it remains in a positive place with +7.1 points.
Discussing the findings, Tina McKenzie, FSB’s Policy Chair, said: “Having small business confidence back in positive territory in the opening months of 2024 is a relief, after two years of it being underwater, and following on from a particularly difficult end to last year.
“Our latest Small Business Index report for Q1 found that small firms’ overall confidence level rose into lightly positive territory after six straight quarters below zero, raising hopes that this year will be a brighter one for small business performance than the recent past.
McKenzie added: “Small firms may finally feel able to leave the survival mode they entered in order to cope with the successive blows of the pandemic, the cost of doing business crisis, and soaring energy bills.
The domestic economy remains a big challenge as far as expansion plans are concerned, but if it performs better than expected, that could give small businesses the opportunity they have been waiting for to grow and flourish."
As McKenzie rightly points out, there are still industries and businesses that are facing challenges. The Help to Grow: Management Course is designed to enable business leaders to develop the skills to weather difficulties or take advantage of an improving economy.
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