The cost of living crisis is having an impact on optimism and confidence amongst businesses across Dumfries and Galloway.
The latest South of Scotland Business Panel survey has laid bare the challenging circumstances facing companies and social enterprises.
More than 600 firms took part, with the cost of doing business, as well as inflation and the recession, having an impact on the wellbeing of employers and staff.
But the study also revealed business performance had remained stable, with financial viability remaining generally positive.
Jane Morrison-Ross, chief executive of South of Scotland Enterprise, said: “It is concerning to see confidence, wellbeing and cost increases impacting our businesses and in the short-term all public sector partners must work together to support them as best we can.
“The survey also covers other areas which SOSE will look to support where it can in 2023, such as women in business.
“However, the survey does highlight some areas for optimism.
“Three-quarters of businesses were looking to support staff wellbeing through the cost crisis, performance remained stable and financial viability over the next six months being generally positive.
“I would continue to encourage any business or social enterprise currently facing rising costs to visit findbusinesssupport.gov.scot/cost-of-doing-business for the latest advice, information and support, or to come speak to us.”
The study found that more than three-quarters of businesses were seeing their wellbeing impacted by the cost of living crisis, with half of them reporting it was making them feel worried or stressed – with a similar impact on their staff.
Confidence in the economy had fallen from 60 per cent at the same point last year to 37 per cent, with around a quarter of businesses only able to plan around a month ahead.
More than 80 per cent of firms were confident they would be viable over the next six months – down from 91 per cent in the summer – with a quarter of tourism companies saying they were not confident in their viability.
And more than 85 per cent of firms had financial concerns, the main one being unpredictable costs.
The full report is available at www.southofscotlandenterprise.com/business-surveys, alongside previous survey results.
