FSB Reports Increase in Confidence Amongst Smaller Businesses
Over recent years, confidence levels amongst both consumers and small businesses have taken a knock, driven largely by the difficult financial and economic climate.
However, according to a recent report from the Federation of Small Businesses, there has been a notable increase in optimism and confidence amongst small businesses across the nation.
This is creating fresh hope for increased business investment for 2014.
The FSB said that an increase in optimism had been noted across small businesses in all regions of the UK, which has increased hopes of business investment over the course of next year increasing. The report suggests that companies are now finding it a little easier to get the finance they need for their companies. The report also suggested that out of more than 2000 businesses that were polled 25 percent were expecting to be able to invest over the course of next year.
The data also shows that the number of businesses being turned down for credit from lenders has fallen to its lowest level since the beginning of 2012. However, the report also indicated that only around 16 percent had actually applied for credit during the three month period, which others using existing capital or other funding sources to get the finance they needed.
The Funding for Lending scheme introduced by the government may have played some part in the drop in businesses being turned down for credit. Many businesses also believe that the scheme has resulted in them being able to access finance at lower interest rates.
An official from the FSB said that the economy would be starting out on a more solid footing in 2014 as a result of the increased confidence and optimism seen amongst growing businesses over the course of this year. He said that small businesses were investing more in the growth of their companies and as a result were employing more people – a trend that is expected to continue and increase over the course of 2014.
The FSB has said, however, that it is important for the government to continue supporting small business growth in order to maintain or even increase confidence levels over the growing year. He said that complacency from the government could have a damaging effect on the small business sector and that the government needed to focus on initiatives such as a cut in business rates and continued promotions of the Funding for Lending Scheme.