Small businesses see highest confidence levels since 2021, Moore finds

Small businesses have reported their highest levels of confidence in outlook since 2021, according to a new survey by Moore UK. 

The firm’s ‘Owner Managed Business Pulse Survey’ found that 80% of UK businesses surveyed say they feel confident of meeting their profit targets for 2024, with 91% believing their profitability will increase next year. 

Moore UK’s research also found that nearly half (49%) of businesses are planning to increase their workforce in just the next three months, while only 6% expect to make layoffs.

It comes as 41% of owner-managers said that recruitment and retention challenges had caused the workloads of their existing staff to increase in the past year, and 26% reported it had caused them to miss their growth targets. 

Elsewhere, Moore found that business owners are set to enter next year with a heightened focus on catching up on growth, with profitability (75%) and cash flow (72%) ranked as the biggest areas of focus for businesses in 2024. 

According to Moore UK, 2024 is also set to be the year that smaller businesses embrace AI, as 44% of owner-managed businesses “definitely” intend to use AI tools such as ChatGPT and Chatbots in their daily operations and a further 39% “possibly” intend to. 

Maureen Penfold, chair of Moore UK, said: “UK small businesses clearly see light at the end of the interest rate tunnel. Business owners are confident that 2024 is going to see a better economic landscape than 2023 and their businesses will see increased profits as a result.

“It’s promising to see that reducing headcount is far from the minds of many, even with a lot of economic black clouds still present. The coming year will see staff recruitment and retention remain a key priority as businesses continue to invest heavily in their talent.”

She added: “While optimism has risen, businesses haven’t lost sight of the challenges they face. They clearly believe profits are going to improve, but that is only going to be achieved through rigorous cash flow management.

“Over the past year, AI has become a game-changer across the business landscape. Smaller companies are now recognising its immense potential to streamline workflows, boost efficiency and act as a powerful marketing tool. 2024 will only see this trend continue to gain momentum.”