Scotland’s economy: Small firms ‘optimistic’ following rise from record lows

Small businesses in Scotland are showing more confidence despite rising overheads and problems accessing finance, according to a new survey.

The Federation of Small Businesses (FSB) Index showed business confidence had risen from “record lows” reported at the end of 2011.

Overall the Index, which surveyed more than 3,000 FSB members across the UK, shows confidence rising for the first time in a year, with more than half of those surveyed aiming to grow in the 12 months ahead.

The Scottish results show small businesses north of the Border are more confident than the UK average. The survey shows “considerable optimism” about expansion, with a third of firms looking to increase capital investment.

Meanwhile, a second report has suggested that a rise in business confidence points to the fact that the UK is taking tentative steps towards recovery.

The study, by accountants and business advisers BDO LLP, is based on an Optimism Index, which looks business trends across the UK.

It shows business performance for February has passed the crucial 95 mark that indicates growth, with a reading of 98 for the past month – the highest in nine months.

Neil Craig, a BDO LLP partner in Glasgow said: “Increasing optimism across sectors such as manufacturing and the all important services sector is particularly welcome.“