Small businesses in the Midlands are predicting growth for the third consecutive quarter, new research reveals.
A study conducted by Novuna Business Finance also found that the overall percentage of UK small businesses predicting growth is at a two-year high.
The quarterly tracking research from Novuna, now in its 10th year, tracks the percentage of business owners that forecast actual business growth each quarter. The last quarterly cycle of Novuna research revealed that 35 per cent of enterprises predicted growth.
The study also indicated that, since the general election, business owners in the north and the Midlands feel more confident than in the south-east or south-west.
In the West Midlands, small business growth forecasts have jumped from 29 per cent to 40 per cent since the eve of the general election, with a similar rise in the East Midlands (27 per cent to 37 per cent).
Novuna also reported that younger businesses trading for less than five years have seen growth forecasts improve over four consecutive quarters during 2024.
Jo Morris, head of insight at Novuna Business Finance said: “While there is a lot of speculation on what lies ahead for businesses in the Autumn Budget, the last four months have been a period of relative positivity and consistency for UK small businesses.
“For the last two consecutive quarters, 35 per cent of small business owners have told us they forecast growth, which represents a marked upturn from 30 per cent before July – and the years between Covid and the cost-of-living crisis, which was a period of stagnation in terms of small business growth forecasts.
“As the Government pledges to create equity of opportunity more broadly across the UK, it is noteworthy from our data that small business growth is on the rise across the Midlands and the North. There are challenges ahead this autumn, as eyes turn to the Autumn Budget and the economic ramifications of the US Presidential election result, but UK small businesses go into Q4 in their most buoyant mood for two years.”
