The UK's small firms are showing increasing optimism for 2014 according to the Federation of Small Business following results from its Small Business Index at the end of 2013. For the fourth consecutive quarter, the measure of confidence among small firms has grown year-on-year, up 27.2 points from -5.6 in Q4 2012 to +21.6 in Q4 2013. Encouragingly, this optimism was replicated in every region of the UK and in each business sector.
- 1 in 10 businesses report running above capacity while a third are running at full capacity – both the highest figures since the Small Business Index began in 2010.
- Feeding into expansion plans, capital investment intentions continue to rise with almost a quarter (23%) expecting to invest in the next year.
- While 16 per cent of respondents had applied for credit in Q4 2013, reported rises in turnover and profitability, as well as stronger growth aspirations, means businesses could be paying for investment out of existing sources of capital.
- 63% report operating costs have increased year-on-year.
- 16% expect revenue to increase in Q1 2014
