Small businesses still crucial to the West Midlands despite three-quarters of people fearful of their future, research shows

That matches the national trend, with a survey by commercial insurer NFU Mutual showing 75% of UK consumers are worried about the outlook for the nation’s SMEs. 

More than eight in 10 (82%) 25 to 34-year-olds – often those kick-starting a small business or taking over the reins of a family-owned venture – say they are fearful for the future of independent businesses, the largest percentage of any age bracket. 

Supporting the local economy came out as a key driver behind shopping small or independent, with more than half (55%) saying it was a main benefit. However, four in every 10 respondents to the survey said the cost of goods or services being too high was a big barrier to using them regularly. 

While there may be concern among consumers, a third of those surveyed highlighted the customer experience as a big draw and 30% said an attraction to use small businesses is the level of customer service. A quarter also highlighted the high quality of goods on offer. 

Zoe Knight, Head of Commercial at NFU Mutual, said: “Small businesses are the bedrock of a community and play such a vital role in the West Midlands. 

“What is clear from our research is that, while a large number are concerned about the future, an even larger number still regularly use small or independent businesses. In the last six months in the West Midlands, more than nine in 10 of us made purchases or used the service of a small or independent business. 

“The economy has seen plenty of challenges for small businesses and last year’s Budget announcements add another layer of uncertainty with tax changes set to come in next year. 

“The West Midlands is home to thousands of excellent small and independent businesses, which have always made up a vital part of the region’s identity, and we would encourage shoppers to continue to support local businesses and make the most of the great levels of service they offer.”