Clearview Midlands January 2014 - Issue 146 | Page 28
2014PREDICTIONS
Encouraging outlook shows
potential for growth in 2014
The UK’s small firms are showing increasing
optimism for 2014 as businesses remain
positive about the economic outlook. Latest
research suggests small firms want to grow
their business and find access to finance
a little easier, according to the Federation
of Small Businesses’ (FSB) Small Business
Index.
For the fourth consecutive quarter, the Small
Business Index measure of confidence among
small firms has grown year-on-year, up 27.2
points from -5.6 in Q4 2012 to +21.6 in Q4
2013. Encouragingly, this optimism is also
replicated in every region of the UK and in
each business sector.
This increased confidence means more small
firms are planning to invest in and explore
the global trade market. New data shows
businesses expect to see rapid or moderate
expansion in the next 12 months. Alongside
this, one in 10 businesses report running
above capacity while a third are running at
full capacity, both the highest figures since the
Small Business Index began in 2010.
Voice of Small Business INDEX Q4, 2013
Credit conditions are easing
Unsuccessful credit applications are at lowest levels since early 2012
2012
2012
2013
-20
-25
-30
2013
-20
-25
-30
-35
-35
-40
-40
-45
-45
-50
-50
-55
-55
-60
-60
Credit availability index
Credit affordability index
Regional Small Business Index
Wales
+20
Most confident
sectors
Northern Ireland
+55
Technology
North West
+17
Scotland
+25
Growth since Q4, 2012
South West
+21
Yorkshire
+22
London
+32
Eastern
+22
West Midlands
+28
North East
+45
East Midlands
Finance
+33
South East
+38
Firms plan to
increase
headcount
56.6%
of small firms hope to
GROW in 2014
28
Feeding into expansion plans, capital
investment intentions continue to rise with
almost a quarter (23.1%) expecting to
invest in the next year. Businesses also want
to take on more staff perhaps ahead of the
Employment Allowance, which comes into
force in April 2014. And, with FSB members
polled prior to the Autumn Statement, where
a further incentive to take on young people
was provided, more could be set to invest in
new staff.
Encouragingly, the numb