Small business confidence climbs in Sussex and the South East

The last Quarter of 2022 heralded the lowest confidence score since lockdown. For Quarter 1 in 2023, however, we are back in positive territory.

Although revenue remains in negative territory at -5%, this is an improvement on the -12% of the last quarter. This is above the UK average of -7%. Looking forward, SMEs predict a net revenue figure of 22% over the next quarter, anticipating some significant economic growth across the region. This is reflected in the employment statistics. 17% of SMEs increased their employment levels, and 13% decreased them. This is above the predictions of the last quarter, where 11% predicted an increase and 12% foresaw a decrease.

In the South East, three-quarters of small businesses increased the average salary in the last 12 months, with 70% increasing the average salary by 2% or more. This positive trend is mirrored in the investment intentions of small businesses with the South East outperforming the whole UK. The net balance of firms looking to expand stands at 15%, compared to a national average of just 2%.

Ian Ross, FSB regional chairman in the South East, said: “Hopefully these findings will give us a reason to cheer. These positive statistics show that supporting small business matters. Despite the economic backdrop, they are investing, they are recruiting, and they are continuing to drive our economy forward.”