Our latest survey shows a small dip in UK SME confidence. After a modest improvement in confidence in the first quarter of this year, the continued pressure of inflation and rising costs has dampened the spirits of many of our respondents.
Against this backdrop however, our findings reveal modest improvements in those smaller businesses who are reporting turnover and profit stability and/ or growth, and a corresponding decrease in those who are reporting negative quarter-on-quarter turnover and profit performance.
The Survey uses business owners’ responses on business performance, confidence, and investment intentions, to produce an overall confidence score between -10 (very unconfident) and +20 (highly confident).
(fall of -0.36 since Q2)
have seen turnover grow in the past quarter
have reduced spend on travel & entertainment
Plan to expand over the next 12 months
expect to increase headcounts over 2023
Consistent with previous surveys, we find SME owners being kept awake at night by a range of different worries. Some are directly linked to the economic cycle and others are more evergreen.
Rising cost/ inflation
Finding new customers
Work life balance
Capify has produced some practical guidance for how owners can overcome some of these evergreen challenges. You can access the article here