latest Small Firms Association (SFA) business-sentiment survey, which is published today (10 January).

There are muted expectations on the outlook for 2022, with just 41% of small business owners expressing optimism in winter 2021, compared with 55% in summer 2021.

COVID ‘downer’

SFA director Sven Spollen-Behrens says: “Many small businesses find themselves back in a situation of COVID restrictions, which they did not expect in the earlier half of the year.

“This has affected their ability to trade optimally. They have been particularly affected by issues such as an increase in the costs of doing business, the cost of raw materials, and restricted supply chains.”

The survey shows that domestic economic growth continues to be the primary driver of business opportunities.

Green economy speedbumps

As well as digital transformation and business expansion, a full 61% of small business owners viewed the green economy as a priority for 2022. 

However, high costs are the most significant barrier to a green transition, followed by lack of clear access to information, and a disjointed approach by State agencies, the survey shows.

Spollen-Behrens added: “The final quarter of 2021 was a difficult one for the small business community, with the ‘stop-start’ nature of COVID restrictions causing a fall-back in confidence levels.

“We now need to find a way to live with COVID safely, given the highly successful uptake of booster vaccinations,” he said.