The latest figures from the Federation of Small Businesses show that confidence amongst its Scottish members rose in the first quarter of 2013 but still lags behind the rest of the UK. A breakdown of its quarterly confidence index also shows small business owners are planning to invest, though fewer of them are looking at loans and other finance to achieve their ambitions. For the first time in over a year, more Scots small firms say they’re investing in their businesses than the equivalent UK figure.
However the data, gathered before last week’s Budget, also shows that a majority of Scottish businesses (61%) are operating below capacity. Nonetheless, they expect to increase their staffing levels a little over the coming three months.
Those in the financial and business services remain the most optimistic about the business environment, while retailers and manufacturers expect conditions to deteriorate. Business owners report that the price or fuel (56%) and other utilities (51%) remains the main driver of increased business costs.
Andy Willox (right), the FSB’s Scottish policy convenor, pointed out that small firms “operate in every community the length and breadth of Scotland. An increase in small business confidence is, therefore, good news for all of us – even if Scottish firms continue to be less positive than their UK counterparts and if we’re still behind where we were a year ago.
“Confidence is key to recovery and I am heartened to see that more small firms are planning to invest. That means more orders placed, more business being done and fewer suppliers looking nervously at empty order books and trimming staff costs. I hope more large businesses now follow our lead and start investing the significant sums on which they are sitting. However, businesses’ investment and growth intentions are being undermined by spiralling energy and fuel bills. We need more action in this area.”