Small British businesses raise revenue growth projections despite Brexit

Small businesses in the UK have raised their revenue growth projections for the third consecutive quarter, according to a new report by Capital Economics.

The first SME Growth Tracker of 2017 has found that Small Business Enterprises (SMEs) are now forecasting a 2.3% revenue growth for the coming 12 months.

Regionally, SMEs in the North East expect the sharpest improvement in business conditions for their own companies in the coming twelve months, with an SME Confidence Index score of +11, well above the national average.

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In contrast, Welsh SMEs are the only businesses, on average, expecting conditions for their own company to deteriorate in the coming year, with an SME Confidence Index score of -2.

Scotland, despite largely voting against Brexit and possibly now facing another independence referendum to add to business uncertainty, has a Confidence Index well above average of +6.

Despite the general optimism, it appears that businesses are worried about the potential of rising inflation and increased supply costs, with 78% believing the former is a risk to their business, with respondents believing prices to raise by 2%.

The SME Growth Tracker is a quarterly report commissioned by Amazon UK and Enterprise Nation that assesses growth prospects and views on the broader UK economy from small and medium-sized enterprises.

Amazon UK director of Seller Services Simon Johnson said: “We are seeing a big rebound in confidence amongst British SMEs after a significant decline in December, but small businesses leaders remain concerned about the impact of rising supply costs and higher price inflation. Small businesses are optimistic but do see potential risks.”