SME confidence cools in Wales

E-mail us

Your login

Use the link below to access your online portal.


GRENKE partner portal

GRENKE customer portal

We're here for you.

Would you like to know more about our services? 

Call us on: +44 (0) 1483 4017 00

SME confidence cools in Wales

According to recently released figures, confidence among small businesses in Wales has fallen to its lowest level in two years.

The latest Federation of Small Businesses (FSB) Wales Voice of Small Business Index remains only just in positive territory for the third quarter of the year.

A similar trend has been seen across the UK as a whole, with confidence falling back from the previous quarter, however Welsh confidence remains markedly below the positive balance of 20.3 per cent seen in the wider UK.

In contrast, small businesses in Wales are seeing improvements in turnover and profitability.

The number of small firms reporting increased turnover was up 2.6 per cent from the previous quarter and now report to be more confident that both turnover and profitability will rise by the end of the year.

Of the firms questioned, 47 per cent hope to grow in the coming year, which is up 10 per cent from the same time a year ago.

FSB Wales policy manager Dr Rachel Bowen, said: "It is clear from our latest survey that while small firms in Wales are broadly confident of future growth, that confidence has moderated markedly from the high point that we experienced at the start of 2014.

"While there has been a softening of confidence among Welsh firms we have now seen the index in positive territory for more than two years, suggesting that we are seeing a sustained recovery in Wales."

A number of small firms in Wales said they had increased their headcount in the last quarter, which was welcome news, given the balance of FSB business owners who had seen reduced employee numbers in the previous three quarters.

More positive news came in terms of inflation, as 35 per cent of small businesses have reported increased costs of doing business in this quarter.

This figure marks the second lowest level in the industry since the FSB survey began in 2010.

FSB Wales policy unit Chair Janet Jones said that its members taking on staff again signified a particularly positive note, "As we know that smaller businesses are the key driver in job creation in wales."

She continued on to say that helping small businesses in Wales is "essential" to a flourishing and resilient Welsh economy in the future.