GROWTH and financial access will become easier for small firms in the UK by 2014, according to new research by the Federation of Small Businesses (FSB).
Year-on-year the Small Business Index measure of confidence in small firms has grown for four consecutive quarters. In Q4 2013 it was up 27.2 points to +21.6, from -5.6 in Q4 2012.
“Confidence has been in positive territory for a full year, giving economic growth solid foundations moving into 2014,” said John Allan, national chairman, Federation of Small Businesses.
This confidence points towards small firms planning to invest or explore the global trade market, with new data showing businesses could expect to see quick expansion within the next 12 months.
Capital investment intentions have also increased, with 23.1% predicting to invest next year – 2014 could be the time of rapid expansion for many small firms.
Allan said: “Small firms are creating more jobs and investing in their business and there are encouraging results behind the headline figures.”
Coupled with this, the number of firms refused credit application is equal to its lowest point since 2012. However, only 16% of small firms involved in the research applied for credit in the quarter. Rises in profitability and turnover could mean that investments could be paid for using existing capital, rather than credit, the report suggested.