Small business confidence remains solid

Data from Hitachi Capital Business Finance’s latest Business Barometer suggests UK small firms are in relatively good shape, despite current pressures relating to transport disruption and labour shortages.

Following a Spring bounce-back in optimism, the latest figures highlight a new-found sense of stability for many small businesses following the difficulties experienced during lockdown. Overall, 35% of business owners forecast growth over the next three months, while the number of enterprises predicting ‘no change’ in their business outlook has risen across each quarter this year to stand at a new high of 52%.

The fear of business failure was relatively widespread during the early stages of the pandemic, with 29% of small firms suggesting they could close within three months. The comparable figure now, however, stands at just 5%.

Commenting on the survey, Hitachi Capital Business Finance, Head of Insight, Joanna Morris said,“Our latest findings present an emphatic endorsement of the crucial role the small business community plays to the economy and society at large. Having experienced difficulty during lockdown, many have found ways to adapt and grow in the last year. The overall picture is one of remarkable solidity when faced with a volatile market.”