CONFIDENCE is rising among Scotland’s local and independent firms, according to new research from the Federation of Small Businesses (FSB).

As retail and hospitality firms begin to re-open, Scotland’s political leaders are urging people to bolster this optimism by supporting local operators as they welcome back customers.

FSB’s Scottish Small Business Confidence index swung from -69.0 points in the last quarter of 2020, through to +18.8 points in the first three months of 2021. While lower than the UK average (which rose to +27.3 in Q1 of this year, up from -49.3 at the end of last year), Scottish business optimism is now at its highest rates since the second quarter of 2015.

Half of Scottish firms expect an increase in profits in the next three months, compared to 10% at the end of last year. About one in six (16%) Scottish small businesses also say they want to increase staff numbers over the next three months.

Andrew McRae, FSB’s Scotland policy chair, said: “After a dark and difficult winter, our new survey shows that Scotland’s smaller businesses are feeling more positive about the future.

“But the easing of restrictions doesn’t mean that the crisis is over for Scottish firms. That’s why it is so important that people use the local businesses in their communities as they re-open to customers – not just in the next couple of weeks, but in the months and years to come.

“It is outstanding to see Scotland’s political leaders unite to express their support for local and independent firms. No matter who is successful at the polls in May, we need to see our next intake of MSPs coalesce around a commitment to economic and community recovery.”

First Minister Nicola Sturgeon said: “This has been an extremely tough year for businesses across the country, and I can’t thank small business owners, employees and supporters enough for the huge sacrifices they have made to suppress the virus and, quite simply, save lives. I am committed to doing everything I can to support our small businesses so that they can remain a driving force in our economy, and have the means to grow and thrive after a really difficult year.”

Lorna Slater, Scottish Greens co-leader, added: “The Scottish Greens recognise the vital role small businesses play in our economy, and we are committed to supporting them as we secure a green economic recovery from the pandemic.”