Small business are feeling more confident that previously, according to the FSB’s Small Business Index (SBI) which has now moved into positive territory.
Mike Cherry, national chairman at the Federation of Small Businesses, said: “We are delighted to see confidence bounce back at the end of 2016, effectively wiping out the fall we saw over the course of the year in the run-up to the EU referendum and its immediate fallout.
“The current economic outlook seems brighter, and UK small businesses are ambitious and want to make the most of it.
“Small exporters continue their strong rise, as UK goods and services become more competitive overseas and small businesses go out to find new markets and new customers.
“Despite the overall positive picture, our members still face many challenges as rising costs squeeze margins even further.
“The falling pound is driving up the price of imports and rising oil prices are being reflected in higher fuel costs.
“These inflationary pressures and price competition are hitting the bottom line hard with the majority of small firms seeing their profits continue to fall.”