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Small business confidence collapses – FSB calls for growth plan to power through
Liverpool City Center The Small Business Index (SBI)’s headline confidence figure in Q4 2022 fell to -46 points, down from -36 points in Q3 2022, and the lowest such finding since Q4 2020, when it was -49 points. In several individual industry sectors, the confidence reading was particularly low, with retail businesses registering a finding of -83 points, and hospitality firms coming in at -71 points. This is particularly troubling during the traditional during thew:- ‘golden quarter’ for consumer facing businesses such as shops, bars, and restaurants. More positively, the construction (-19 points), IT and technology (-25 points) and manufacturing (-39 points) sectors were more upbeat than average, albeit still in negative territory. More small firms reported a drop in revenues over the previous 3 months (43%) than reported a rise (33%), and their outlook for the next 3 months reflected this as well, with 44% expecting to see a fall in revenues against 3 in 10 anticipating a rise (29%). The proportion of small businesses which saw employee numbers fall (16%) outweighed the share which gained staff (10%) over the previous 3 months, although the employment outlook for the next 3 months was more positive, with 1 in 7 small businesses (14%) expecting to increase their staff numbers against around 1 in 10 (11%) expecting to see a fall. Inflation continued to take a toll on small businesses, with nearly two in five saying costs were significantly higher (38%) than in the same period a year prior. Utility bills, including energy, were cited by over three in five small firms as a driver of their change in costs (61%). Late payments are still holding back a significant number of small firms, with 3 in 10 small businesses (30%) saying their payment situation had worsened over the previous three months. FSB Area Leader for Liverpool City Region, Michael Sandys, said:- “There’s no way to sugar-coat these figures – small businesses’ confidence is at its third-lowest level since we started tracking it nearly a decade ago. But business owners are resilient and where there is a will, we will find a way through. Clearly, falling consumer spending, inflation, and high energy bills are all taking a toll, and poor results after the golden quarter are particularly disappointing, but this should also be a time to grasp the nettle and be decisive in finding more ways for the economy to grow, which is why we have drawn up a plan of action for the Government to implement. Small businesses are always the engine room of any economic recovery. The more rapidly small firms pull through, the more rapidly we can all recover. Helping more people to work, tackling late payment, driving energy efficiency, powering R&D, and getting more people to start up on their own are all initiatives that will make a real difference to the economy; just as small business owners individually will continue to demonstrate the ingenuity they showed during the pandemic to find new markets and new ways of working. Small firms are a fantastic national resource of innovation and creativity; especially if given the right conditions to flourish. These results are incredibly worrying, yes, but they are not the final word.” If you own a small firm, please do let us know if you agree with these finding nu emailing our Newsroom at:- News24@SouthportReporter.Com or by sending us a message on:- Facebook or Twitter.. FULL REPORT IN THE NEXT EDITION OF OUR WEEKLY PUBLICATION, SOUTHPORT REPORTER.
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