Business News 12 Mar 2013

Small firms 'cautiously optimistic despite decline in investment intentions'


Small firms are showing tentative signs of optimism, despite a decline in their investment intentions, a new survey suggests.

The latest quarterly Index from the Federation of Small Businesses (FSB) has revealed an increase in confidence amongst small companies, rising from a negative reading of -5.6 in Q4 2012 to +6.3 in the first quarter of 2013.

However, the report indicates that fewer businesses expect to grow this year – down from 56% in Q1 2012 to 54% in 2013 – while the number of firms applying for finance has also fallen.

Of the 2,686 business owners questioned, the majority cited the domestic economy, consumer demand and access to finance as the main barriers to achieving growth.

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