Confidence returning to small business owners

"Small businesses contribute an enormous amount to the regional economy. A sustainable recovery is reliant upon on their success and growth”

Small business confidence in the West Midlands made a welcome return to positive territory at the beginning of 2024, according to the Federation of Small Businesses’ West Midlands Small Business Index (SBI) for Q1 2024.

The headline confidence measure rose from -20 for the final quarter of 2023 to reach +3 points in the first three months of 2024. This is the first positive outturn since Q1 2023, when the index stood at +7 points.

Despite tough trading conditions for the first three months of 2024, which saw a slight worsening of revenue generation and net employment levels, plus increases to staff costs, regional small business owners expressed a new-found confidence for the future.

Rob Harrison, West Midlands Policy Representative for FSB commented and partner in local branding consultancy Glued commented: “Having small business confidence back in positive territory in the opening months of 2024 is a relief, after 12 months of persistently negative results. The rebound in confidence levels in most sectors is a good indicator that the shallow recession recorded at the end of 2023 is firmly in the past, with small businesses keen to look ahead to expansion and better trading conditions."

Along with more positive news recently on inflation and interest rates, the Autumn Statement of 2023 and the more recent Spring Budget 2024 responded to key ‘asks’ from FSB. They provided tangible help for small businesses - notably the raising of the VAT threshold from £85,000 to £90,000 and the cut to National Insurance contributions.

“These steps towards creating better conditions for small business formation and growth must be built upon," added Rob. "Small businesses contribute an enormous amount to the regional economy. A sustainable recovery is reliant upon on their success and growth.”