Research published today (Monday 13 November2023) by the Federation of Small Businesses (FSB), shows that confidence levels amongst small businesses in the West Midlands dropped again in the third quarter of this year. This follows a sharp decline in the previous quarter and means that the West Midlands now sits below the UK average.
The FSB Small Business Index for the West Midlands, measures regional small businesses’ recent performance, current circumstances and plans for the future. It shows that:
- Revenues over the past three months were down overall – with 10% more respondents reporting a decline than reported an increase. Similarly, for the next three months, more thought that revenues would decrease than thought the opposite.
- Employment levels for around three-quarters of respondents remained static over the period. Of those that saw a change, slightly more reduced staff numbers than increased them.
- Average salary bills increased for almost two thirds of respondents and an even higher proportion expect further increases in the next three months.
- Growth aspirations are muted, with fewer than half of respondents expecting to grow, while more than a fifth anticipate downsizing, selling or closing their business.
- Capital investment intentions follow this trend, with a quarter of respondents intending to increase the capital in their business but a fifth contemplating a reduction.
- The greatest barriers to small business growth were perceived to be the general economy, followed by consumer demand and then utility costs.
Rob Harrison, FSB West Midlands Policy Representative and Director of local communications agency Glued, commented:
“Based on these findings, it’s clear that many small business owners in the region are facing multiple challenges. Plus, the Government’s own quarterly insolvency statistics for April to June 2023, show that corporate insolvencies across the UK are at a 14-year high.
Clearly more needs to be done, fast, to make the UK the best place to run a business – small or large. The FSB will continue to provide Government and policymakers with analysis, insight and practical solutions to help achieve this goal”.
