The FSB ( Federation of Small Businesses ) report shows that compared to the previous quarterly report , which came out in January when Omicron fears were still prevalent , confidence amongst the region ’ s SMEs has definitely improved . However , the overall figures are still in negative territory – i . e ., those who feel confident are in the minority – and the report also reveals that the South West is now the least positive region for SMEs in the whole of the UK .

The upturn in confidence amongst some SMEs is reflected in the fact that of the businesses who took part in the survey four times as many expect to take on staff compared to those planning to cut back . Almost one in two of the local FSB members surveyed predicted their business will grow either moderately or rapidly in the coming year .

Among the main concerns expressed by South West respondents was the problem of finding appropriately skilled staff to fill vacancies - nearly four in ten said this was a major barrier to growth .

The FSB ' s regional policy representative , Craig Carey- Clinch , said the results of the 2022 quarter one survey offered some hope but said that things on the ground were still very difficult for many of the region ’ s small business owners and selfemployed .

“ The overall picture seems to be that confidence amongst members – though still disappointingly low compared to most of last year – is creeping up again and this is something we must feel encouraged by .

“ However , the sooner we can see the South West off the bottom of the league table for business

confidence the better . We must all hope that happens as soon as possible .”

The regional report is part of the wider national FSB quarterly survey which also revealed that 87 per cent of small business owners state that operating costs are up compared to this time last year citing fuel , utilities and taxation as major contributors to that increase .

It also shows that recovery and confidence varies across sectors . Firms in the accommodation and food sector which have benefited from relaxed travel rules , were among the most optimistic but manufacturing , wholesale and retail firms were more negative as surging operating costs , supply chain disruption , labour shortages and consumer belt-tightening weighs on expansion plans .

SOUTH WEST

“ The South West Small Business Index ( LSBI ), which measures confidence amongst businesses , has risen since the last quarter .”

CONFIDENCE LEVELS

In South West the confidence level currently stands at

Last quarter it stood at -22 %

WAGE GROWTH

of small businesses increased the average salary over the last year

EMPLOYMENT

of small businesses have lost staff in the previous quarter

BUSINESS CONCERNS

51 %

General economic conditions

68 %

63 %

INVESTMENT INTENTIONS

FORTY-EIGHT

per cent

of small businesses have aspirations next year to grow rapidly or moderately

31 % 38 %

Consumer demand

increasing the average salary by 2 % or more

Appropriately skilled staff

Are the greatest perceived barriers to growth over the coming year

fsb . org . uk