Small firms are cautiously optimistic heading into 2013, but their confidence has grown enormously compared to this time last year.
In the Federation of Small Businesses’ latest Small Business Index, participants were asked to score their business prospects over the next three months. The measure of confidence was recorded at -5.6 points, 1.1 points lower than at the end of the last quarter. However, this quarter’s numbers are significantly higher than those from this time last year, which stood at -24.5.
The statistics show that small businesses are holding out hope for success in the new year. Around a third of firms said investment is a priority for them over the next 12 months. It is hoped that new government initiatives will help to benefit small businesses in 2013.
“This quarter’s report shows cautious optimism from the UK’s small firms,” John Walker, National Chairman, Federation of Small Businesses, said.
“There’s no doubt that it is still a tough environment and the Autumn Statement highlighted that it’s going to be tougher for longer. However, small firms want to get on, grow their business and invest. We urged the Chancellor to put small firms at the heart of the Autumn Statement and many of his plans will help — especially raising the tax free investment limits.”