‘Small business confidence has wavered inWales – but is still higher than the rest of the UK’
CONFIDENCE among small businesses in Wales has fallen but remains the highest in the UK, shows latest quarterly research from FSB Wales.
From a three-year high positive net balance of 31% in the second quarter of this year, confidence has fallen – although is still in a positive place, with plus 22% in Q3.
The Welsh Business Index shows that Wales is still significantly outperforming the rest of the UK, which saw the index fall from 15% last quarter to plus 1.1% in Q3.
The index shows that small business confidence is still higher than it was a year ago.
The UK Small Business Index stands above the minus 2.9% level seen in Q3 of 2016 – but has fallen over the past two quarters.
Janet Jones, policy unit chair of FSB Wales, said: “This new report shows that small business confidence has wavered in Wales, although confidence in Wales is still higher than that in the rest of the UK.
“Despite faltering business confidence, 19.7% of business reported that they had increased their employee headcount in the third quarter of 2017.
“This serves as an important reminder that Wales is built on a small business economy, and that any plans from the Welsh Government to develop the national economy must be aimed at improving circumstances for small businesses.”
Over the third quarter a net balance of 52% of small businesses in Wales reported export growth – much higher than the 19.5% reported by small businesses across the UK.
Growth is largely driven by strength in key export markets such as the EU.
The EU accounts for more than two-thirds of Welsh exports, compared to just less than half of the UK’s exports.
In the year to March 2017, the value of exports to the EU from Wales increased by 13%, while exports to countries outside the EU increased by 10%.
Ms Jones said: “Small businesses in Wales are exporting more than ever before, and it is important that the UK and Welsh governments are supporting this growing trend.
“We recently called for Welsh Government to develop a Trade and Investment Strategy and a key part of that would be supporting small businesses who seek to trade abroad.”