South West small businesses least confident in country, says report

The South West is lagging behind every other area in the country for small business confidence, according to a new regional report.

The Federation of Small Businesses (FSB)'s quarterly confidence survey was taken among small business owners and sole traders between December 13 last year and January 2 this year.

READ MORE: Business confidence among South East firms fell in October

The state of the economy, labour costs and the lack of available staff were highlighted as the three biggest challenges for SMEs.

"These figures paint a depressingly familiar picture here in the South West," said FSB’s South West policy rep Craig Carey-Clinch.

"The reality is when confidence is low it affects every aspect of business thinking.

"When businesses lack confidence they take less risks, are less inclined to take staff on and can put growth plans firmly on hold. And none of that is good for the economy as a whole. It is a worrying report."

The FSB said there was some consolation in that the South West figures were still well ahead of the same time last year - when regional confidence hit a record low figure.

Figures from the South West were released as part of the overall quarterly FSB confidence report for England which showed a similar downward trend in small business confidence elsewhere, albeit not quite as marked as in the South West.

Tina McKenzie, FSB's policy chair, noted: "Small firms are ever the economy’s canary in the coalmine, more exposed to shifts in consumer behaviour and changing circumstances due to their lower levels of reserves to fall back on.

"With many fighting hard to keep going amid challenging circumstances, their ingenuity, grit, and tenacity are being tested to the limit."

The FSB South West report can be downloaded HERE.

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