Small business confidence has reached its highest level in three years, according to a recent report from the Federation of Small Businesses (FSB).
The latest Small Business Index from the organisation revealed that confidence in the sector reached 15.9 points in the second quarter of the year, compared with 9.6 points at the beginning of the year.
The highest levels of confidence were seen in financial services, while small manufacturers were also more optimistic about the future.
The report also revealed that more businesses expect turnover to increase, and an increasing number expect to take on additional staff, during the coming quarter. Meanwhile, more small businesses have reported a rise in exports.
The FSB is calling on the Government to use its forthcoming Spending Review to introduce measures to support business and consumer confidence, including a clear plan for the new Business Bank to improve competition in the banking sector and to advise small businesses on alternative sources of finance.
John Allan, FSB National Chairman, said, ‘After five consecutive quarters of year-on-year growth, confidence is moving in the right direction. Small firms want to employ more people and grow their business. This is all good news, but we must not be complacent. The Chancellor must use the Spending Review to build on this optimism’.