• Swindon & Wiltshire Economy
• Friday February 2 2024
• Author Name: Peter Davison

Small businesses in South West are the least confident in England – FSB

Small businesses in the South West are the least confident in England, according to a new report published by the Federation of Small Businesses (FSB).

The results of the FSB’s quarterly confidence survey for the final three months of 2023 saw confidence slip back across the region.

And for the third quarter in a row, the South West was the least positive region in England.

The state of the economy (64 per cent), labour costs (31 per cent), and the lack of available staff (26 per cent) were cited as the three biggest challenges they face.

One in five small business owners said they might have to reduce headcount.

‘Depressingly familiar picture’

There was some consolation in that the South West figures are still well ahead of the same time last year – when regional confidence hit a record low figure – but the general tone of the latest quarterly snapshot of SME confidence is described as ‘worrying’ by FSB’s South West policy representative.

“These figures paint a depressingly familiar picture here in the South West,” said regional policy rep Craig Carey-Clinch.

“The reality is when confidence is low it affects every aspect of business thinking.

“When businesses lack confidence they take less risks, are less inclined to take staff on and can put growth plans firmly on hold.

“When SMEs struggle the whole of UKplc struggles and with two-thirds of small businesses in the South West citing the general state of the economy as the biggest barrier for growth for 2024 this clearly needs to be addressed.

“As we now enter a possible election year we must ensure that all politicians take note of what is happening in the small business arena and make it at the heart of their economic agendas.

“2023 ended on a downbeat note for far too many of our great South West businesses – let us now hope that picture changes quickly and 2024 can see the ‘bounce back’ we all want to see.

SMEs are the canary in the coalmine

Tina McKenzie, FSB’s policy chair, said: “Small firms are ever the economy’s canary in the coalmine, more exposed to shifts in consumer behaviour and changing circumstances due to their lower levels of reserves to fall back on.

“With many fighting hard to keep going amid challenging circumstances, their ingenuity, grit, and tenacity are being tested to the limit.”

The FSB South West report can be downloaded at https://www.fsb.org.uk/resources-page/south-west-small-business-index-q4-2023.html

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