Businesses in the South West expect job creation to rise in the next 12 months, despite a backdrop of low confidence in business conditions and a drop in confidence in the economy, according to a report published today.

The Q2 2018 SME Growth Tracker, report by Capital Economics, commissioned by Amazon UK and Enterprise Nation, assesses growth prospects and views on the UK economy from SMEs based on a YouGov survey of over 1,000 UK SMEs.

Across the South West, the SME Growth Tracker found:

• Revenues no longer in decline: SMEs in the region expect revenues to stop falling in the next 12 months
• Exporting goods and services: More than half (59 per cent) of SMEs surveyed in the South West are exporting. The UK national average for SMEs that were surveyed is 55 per cent
• Embracing e-commerce: 68 per cent of SMEs surveyed in the South West now use e-commerce; the UK average for SMEs that were surveyed is 63 per cent
• Confidence worsens: SMEs in the South West don't expect business conditions for their company to improve over the next 12 months with a score of -12
• Confidence in the UK economy drops significantly: South West SMEs aren't confident about the UK economy, expecting it to deteriorate in the coming year
• Jobs growth: SMEs across the South West expect to increase headcount by 0.2 per cent in the next 12 months
• Supply costs rise: SMEs in the South West predict supply costs to rise by 2.2 per cent in the next year

Daniel O'Neill (pictured), who runs the successful Gloucester-based company, ProCook, said: "While it's concerning that confidence in our local business conditions is falling, it's reassuring to know that even against this difficult backdrop, SMEs still expect to create more jobs. What's also encouraging is the number of local companies here who use e-commerce.

"It's one of the highest numbers in the country and, speaking from personal experience, I think more SMEs should trade online. By selling on sites like Amazon, not only does your business have a much bigger customer base, but it also provides the opportunity to export goods and services locally and internationally."

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