Small businesses are shrugging off high interest rate anxiety to report the highest levels of confidence in their outlook since 2021’s lockdowns, according to new research.
The Owner Managed Business Pulse Survey, by accountancy network Moore UK, surveyed 500 directors of UK businesses with an annual turnover between £1 million and £30m.
Eight out of 10 feel confident of meeting their profit targets for 2024, while more than nine out of 10 believe their profitability will increase next year.
“UK small businesses clearly see light at the end of the interest rate tunnel,” said Maureen Penfold, chair of Moore UK.
“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.”
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The research found that nearly half are planning to increase their workforce in the next three months, while only 6% expect to make layoffs.
Meanwhile 2024 is slated to be the year that smaller businesses embrace AI, with 44% of owner-managed businesses ‘definitely’ intending to use AI tools such as ChatGPT and chatbots in their daily operations and a further 39% ‘possibly’ intending to.
Only 17% reported no intention to make use of this technology.
Penfold said: “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.”