Some 14 per cent of small business owners that participated in the survey by the Federation of Small Businesses said they intended to take such action — the highest level recorded since the FSB began compiling the poll in 2010.

 

The FSB said its quarterly small business index, which is based on the survey of more than 1,000 of its members, hit -2.5 in the last three months of 2017.

 

A figure below zero indicates that more companies expect their performances to deteriorate than improve.

 

It is the fourth consecutive quarterly drop in the FSB small business index, which stood at + 20 in the first quarter of 2017. The index hit -2.9 after Britain voted to leave the EU in June 2016.

 

At 41 per cent, the proportion of small business owners reporting a fall in profits in the fourth quarter of 2017 compared with the same period one year earlier was at its highest level since 2013.

 

Overall, 31 per cent of companies said they expected their performances to deteriorate during the next three months, while 27 per cent anticipated improvements.

 

Some 55 per cent of companies said the state of the domestic economy would be a drag on their future growth prospects, with 34 per cent citing weak consumer demand.

 

Mike Cherry, FSB chairman, said it was “absolutely critical” that the UK agreed a transitional arrangement with the EU for when Brexit takes effect in March 2019, and that the two sides also finalised an ambitious trade agreement.

 

But, he added: “It’s spiralling costs, weak growth and flagging consumer demand at home that are front of mind for small firms day to day. It’s troubling to see a record number of entrepreneurs seeking an exit as these challenges prove too much for many.” [...]

 

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FSB small business index