Confidence Rising among Smaller Businesses

A survey conducted among small businesses in Scotland has revealed that amid the persistent economic gloom that is afflicting the UK’s economy, confidence among small businesses has risen. The Federation of Small Businesses (FSB) said that confidence for the fourth quarter of 2012 was higher than at the same point in 2010 and 2011.

The FSB also found that businesses were better placed to invest  now than in the recent past , with many firms who took part in the survey confirming they were planning to put some money into areas such as technology, expansion and even recruitment. However, there were a few concerns expressed by some of the companies who agreed to participate in the research.

Confidence levels rose despite the fact that many smaller firms in Scotland had to contend with the double whammy of having to spend more on fuel and utility bills. The cost of both have risen significantly of late, with many energy suppliers raising prices by several percentage points in the past few months.

In a statement, the FSB’s Andy Willox said:

“When fuel and utilities get pricier, it’s harder for small firms just to break even, let alone make a profit. To do just that, they have to work harder than ever especially with consumer demand remaining low. Hopefully something will be done about fuel and utility costs in the near future.”

Something small businesses could do about trying to cut the amount they spend on utilities is comparing business gas & electricity with Make It Cheaper online. It can help businesses to find a better, cheaper deal with different supplier than the one they’re currently getting.

Despite the concern over the rising cost of running a small firm in Scotland, the FSB also found that investments made could rise in 2013. Mr Willox believes that the UK economy could benefit significantly through increased spending by small businesses, but also said that lenders should play their part.

“If small firms invest more money, then that capital could go towards other businesses, which could help to engineer economic growth. However, lenders should do their bit by helping out companies who seek opportunities for exploring new markets by taking a calculated risk or two”, he said.

Confidence among small businesses in Scotland may be higher than before, but the FSB say it’s still lower than in other parts of the UK. Smaller enterprises in Scotland may be finding it tougher than their English and Welsh counterparts.