Economy Confidence Drop Amongst Small Businesses
Confidence has fallen among small businesses in Scotland as revenues and profits drop, a survey has found.
However, most firms still intend to recruit more staff, according to the latest quarterly report from the Federation of Small Businesses (FSB).
The findings should act as a "timely reminder that a sustained recovery is far from guaranteed'', the group said.
Around 6% of the businesses surveyed reported an increase in revenue over the last three months, down from 17% at the same point last year.
The number of firms experiencing a rise in profits has also fallen, ending a run of five quarters of uninterrupted profit growth.
Andy Willox,the FSB's Scottish policy convener, said: "With revenues and profits taking a hit, it's little wonder that confidence has dropped.
"Even in these choppy waters, though, it's good to see small businesses continuing to do their bit by creating new jobs and investing for the long term.
And the improving credit market will make it easier to turn firms' plans into reality.
"Overall, these figures serve as a timely reminder that a sustained recovery is far from guaranteed. We need to make sure that the small businesses on whom resilient local economies are founded get paid for the work they do, get a fair deal from regulators, and can easily hire the right staff with the right skills.''