Research shows small business confidence is low

Research has revealed that confidence among small businesses in Wales is particularly low at the moment as companies struggle to get going again.

Conducted by the Federation of Small Businesses (FSB), the study cited challenging domestic conditions, access to finance and weak consumer demand as the main causes for the difficulties.

However, Welsh confidence remained lower than any other area in the UK, except Northern Ireland. First Minister Carwyn Jones blamed the high level of stagnation on the banks.

Meanwhile, Janet Jones, Welsh policy unit chair for the FSB, remarked: “The message is clear – businesses want to grow and invest but they need a helping hand to do so. It is frustrating that bank finance is still difficult to get.”

She urged the Welsh government to ensure that its own funding streams are getting through to those businesses that really need the finance. Ms Jones added: “These business-owners are the risk-takers and the job-creators of Wales and it is a concern that they are feeling increasingly insecure about the business environment within which they are operating."

Despite the problems, around half of the 2,600 UK respondents surveyed said that they want to grow their business within the next 12 months.