The outlook for small businesses across Wales is one of recovery according to research by Novuna Business Finance.

The research revealed that the proportion of Welsh businesses predicting growth has broadly doubled since its low point in the spring of this year.

Since the summer, 78 per cent of Welsh small businesses have felt held back by barriers to growth. Market uncertainty has been the most disruptive factor, followed by high fixed costs and challenges finding skilled labour.

The top concerns for small business owners in Wales were the general economic volatility (41 per cent), retaining business (23 per cent), tax and interest rates (18 per cent), red tape (20 per cent) and compliance and regulations (15 per cent).

Jo Morris, head of insight at Novuna Business Finance, said: “As 2024 draws to a close, a snapshot of small business outlook in Wales presents a picture which varies to the national average.

"While growth forecasts for the UK at large have remained remarkable consistent, in Wales the picture has fluctuated more significantly, although growth outlook in Wales has rallied significantly in the second half of 2024. 

“Today, the picture in Wales has stabilised but quarter-on-quarter. This suggests the long-term legacy of Brexit and Covid are still felt.

"Indeed, many of the growth barriers cited by Welsh business leaders link to this – with fewer enterprises looking to expand overseas and ongoing challenges with hiring skilled labour."