FSB

SOUTH WEST SBI Q1 2022

“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

-1%

Last quarter it stood at -22%

WAGE GROWTH

of small businesses increased the average salary over the last year

68%

EMPLOYMENT

11%

of small businesses have lost staff in the previous quarter

63%

increasing the average salary by

2% or more

INVESTMENT INTENTIONS

FORTY-EIGHT per cent

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

BUSINESS CONCERNS

51%

General economic conditions

31% 38%

Consumer demand Appropriately skilled staff

Are the greatest perceived barriers to growth over the coming year

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FSB’s small business confidence report, for Q1 of 2022 in the south west, shows that confidence has risen among SMEs since the end of last year – but there are still many concerns around the economy, recruitment and rising costs.

The report shows that compared to the previous quarterly report, which came out in January when Omicron fears were still prevalent, confidence among the region’s SMEs has definitely improved. However, the overall figures are still in negative territory 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 among 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. And 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 who is based in Cornwall, Craig CareyClinch, 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 self-employed.

“The overall picture seems to be that confidence among 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.” Responding to recent Office for National Statistics (ONS) figures which show producer input price inflation at a record-high 18.6%, and the consumer prices index at 9%, FSB national chair Martin McTague said: “The gulf between the rate of input and consumer price growth underscores the efforts of businesses to absorb costs rather than pass them on. “Small firms in particular find it hard to pass higher operating costs onto customers, fearing that doing so will hamper competitiveness. “More and more are being left with no choice, however, as inflationary pressure collides with an increasingly tight labour market, making it harder and harder to find the right people, and pushing up the wages needed to keep them.

“We hear a lot from politicians about the cost of living crisis, but very little about the cost of doing business crisis which underlies it.

MIXED PICTURE ON LOCAL SME CONFIDENCE

NEW RESOURCES TO SUPPORT LGBT+ ENTREPRENEURS

The FSB has launched a flagship new digital resources hub to support and encourage LGBT+ entrepreneurship, and promote inclusivity in workplaces. FSB’s ‘Let’s Grow Business Together’ initiative has been backed by the Government’s Equalities Minister, Mike Freer MP. It is also backed by prominent LGBT+ business campaigner Iain Anderson, the executive chairman of public relations agency Cicero/AMO. The online hub features first-hand insights and experience from LGBT+ small business owners, some of whom decided to start their own business in order to feel more comfortable being themselves and avoid the risk of discrimination or subconscious bias in a corporate workplace. Inclusion specialist and FSB member Ellie Lowther, who is among the LGBT+ entrepreneurs featured on the hub, reveals that “unconscious bias is something I see in many more areas than you may imagine”.

FSB’s chief of external affairs, Craig Beaumont, who is featured in OUTstanding’s list of the UK’s Top 100 LGBT+ executives, said: “It is a sad reality that barriers, discrimination and subconscious bias are still faced by many in the LGBT+ community.

Anderson added: “I think it’s just fantastic that FSB is creating a hub around LGBT+ issues so that businesses can show best practice, so that they can buddy up. And frankly, like any business owner, you want to do more business, so if this is a way of, at the same time, allowing faster progress on LGBT+ at work for the small business sector, I think that’s fantastic.”

FSB’S CHIEF OF EXTERNAL AFFAIRS, CRAIG BEAUMONT

INPUT PRICE GROWTH HITS RECORD-HIGH

“The Government must now look at targeted interventions that will do most for local economies hardest hit by the pandemic which are now faced with low growth and surging inflation.”

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