ELECTION BOUNCE SIGNALS SURGE IN SMALL BUSINESS CONFIDENCE AS GROWTH OUTLOOK HITS A TWO-YEAR HIGH

LONDON, Aug. 9, 2024 /PRNewswire/ -- The percentage of small business owners predicting growth has hit its highest level for more than two years, after a period of slow decline since the start of 2022.

The new small business survey, commissioned by Novuna Business Finance during the fortnight immediately after the General Election, revealed that 35% of UK small business owners are predicting growth for the next three-months - a rise from 30% for the previous quarter.

Sector findings:
Across nine industry sectors, this quarter sees a rise in the percentage of small businesses predicting growth for the next three months (up to 30 September). Compared to the three months leading up to the General Election, there are significant rises in growth predications reported in: Construction (from 15% to 36%), Agriculture (from 28% to 40%), IT/Telecoms (28% to 38%) – and also a welcome boost for the Retail sector (rising from 26% to 37%). Overall, small businesses in the Finance, Agriculture and Media sectors were most likely to be predicting growth over the next three months.

Regional findings:
Across nine UK regions, the new July data from Novuna Business Finance reveals a rise in the percentage of small businesses predicting growth. Confidence was strongest in London, with 49% predicting growth for the next three months. There were also significant quarter-on-quarter rises for small businesses based in the East (up from 36% to 43%), Scotland (up from 27% to 34%), Wales (up from 15% to 32%), the North East (up from 19% to 31%) and the East Midlands (up from 24% to 32%)

Jo Morris, Head of Insight at Novuna Business Finance commented: "At Novuna Business Finance, our Business Barometer study has been tracking the growth outlook of small business owners every quarter for more than a decade now. The results over time show a remarkable consistency quarter-on-quarter, with outlook seldom changing significantly over a short period of time. Our latest research results represent the biggest quarter-on-quarter swing in growth outlook since the spring of 2021. Supporting a summer of resurgent business confidence, we at Novuna Business Finance are working to provide flexible tailored financial solutions that help established small businesses to achieve their true potential."