STRONG export markets are fuelling increased confidence among firms.
The latest Business in Britain Index from Lloyds TSB Commercial, which surveys more than 2,300 small business owners, shows positive sentiment at its highest since 2007.
The index, which measures confidence about future sales, order books and profitability, reveals that a balance of 18 per cent of firms are confident about the second half of the year, up from 16 per cent six months ago.
The index is derived by subtracting the percentage of those expecting a fall in sales, orders and profitability from those expecting a rise in these areas.
A quarter of firms expect order book levels to rise in the six months to the end of the year, with 42 per cent predicting a rise in foreign sales fuelled by the weak pound and a rise in global demand.
Despite optimism on overseas markets, domestic demand remains a concern, with 56 per cent of firms pointing to the fragility of the domestic market as the greatest worry.
Tony Turner, 76, set up GreenMech, which makes green waste shredders, in 1993. The family-run business, based in Alcester, Birmingham, has seen domestic sales fall over the past 18 months, but this has been eased by growth in exports.
The firm exports to the Continent and even Australia and Malaysia.
Exports make up 60 per cent of turnover, which is expected to reach £6 million this year. Tony says: ‘We have worked hard to develop overseas markets, not least because domestic demand has dropped.
‘Eighteen months ago we employed 40 people. We now employ more than 50 and expect to increase sales by 50 per cent over three years by going into countries such as the US.’
Tags: Enterprise Zone, exports, small business, SMEs
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