Shropshire businesses see resilience tested to limit but there is hope for 2024

Michael Goodall, development manager at the Federation for Small Businesses in Shropshire, Herefordshire and Worcestershire, reflected on a tough year of trading and challenges on many fronts.

Mr Goodall said the FSB would like to see more action to tackle issues such as skills gaps, access to funding and business crime heading into 2024 adding: “That would allow small business owners to plan ahead with greater confidence. Most of all, we want to see more stability and certainty in the political and economic environment.”

Reflecting on 2023, he said: “The flatlining of the national economy, soaring costs of doing business and difficulties recruiting and retaining staff with the necessary skills were probably the three areas that were cited most often.

“A recent survey by the FSB showed almost a quarter of small business owners identify a lack of skilled staff as a stumbling block for the stability and growth of their enterprises.

“These and other economic factors affect some sectors more acutely than others. In general, small businesses working in retail, hospitality and leisure and manufacturing have tended to be hit hardest,” he added.

“A sizeable proportion in professional, creative and scientific and technical sectors have seen trade be stable or booming.

“I think overall, the picture for the past year has been one of small businesses’ resilience and confidence being tested to the limit.”

But he said there are reasons for some hope heading into the new year.

“At their recent annual conferences, all of the main political parties recognised the contribution of small businesses to local and national economies,” Mr Goodall said.

“All had strong policy commitments to support the creation and growth of more small firms.

“In the Autumn Statement, there was very welcome action on late payments, small businesses’ rates, and self-employed taxation.The latter included the abolition of the Class II element of National Insurance and the reduction of Class IV, both of which the FSB has campaigned hard.”