SMB confidence levels increasing, says FSB

Wednesday 9 January 2013

Despite continuing economic concerns, confidence levels are rising among small and medium-sized businesses (SMBs) in Scotland, it has been reported.

Research conducted by the Federation of Small Businesses (FSB) reveals more companies plan to increase investment levels over the next 12 months.

The organisation found that companies are "substantially more confident" during the final quarter of 2012 compared to the equivalent periods in the last two years, reports the BBC.

Andy Willox, Scottish policy convener at the FSB, said that when it is more expensive to do business, companies need to work harder just to stand still.

"With weak consumer demand putting pressure on turnover, we need firm action on fuel and utility costs," he stated.

"For our part, these figures suggest that more firms want to generate more business by investing. This is encouraging, as investment spending gets money moving round the economy, fills order books, builds confidence and therefore drives growth."

Mr Willox said that where smaller firms identify growth opportunities, it is vital that lenders look carefully at their plans and at the potential returns.

"We can't have sound, viable schemes turned down because finance providers won't take calculated risks," he added.

Posted by Alex Boardman