East Midlands business confidence ‘remains stable’

Rav Panesar

Business confidence in the East Midlands remains stable and the stark dips of 2021 are finally settling – that’s according to the latest Federation of Small Businesses (FSB) Small Business Index.

Confidence amongst small business owners in the region has remained stable in Q1 at 17 percent, a slight increase from 15 percent in Q4 of 2021. However, growth and investment intentions have declined, signalling that many small businesses are still focusing on recovery.

Although the net profits of small businesses in the region have decreased, just over half (52 percent) have raised their average salaries – demonstrating that they are doing all they can to retain their workforce.

Rav Panesar, FSB East Midlands policy representative, said: “Times are clearly still tough for small firms. Business growth aspirations have declined and investment intentions have dropped, indicating that much more needs to be done to signal a stable economy for small businesses to aid planning and future proofing. It is positive though that business confidence seems to have stabilised and that there are anticipated revenue increases coming over the next three months, which I hope will bolster confidence further.

“FSB will continue to work with and lobby local policymakers and partners on the necessary levers for positive change. As the new East Midlands Policy Representative for the FSB East Midlands, I am committed to working with FSB’s members of staff and volunteer network to understand in more detail what is required to drive confidence and build aspirations across our region.”