Barry Cash was speaking after the annual publication of the 2015 Business Trends Survey today.
The survey revealed that, over the last 12 months, 42% of those who took part said they were feeling less confident about the position of the island's economy, compared with 28% last year.
Only 14% of people said they felt more confident about its position.
'It's down to a variety of issues, I believe,' said Mr Cash.
'However, key to this is that it takes the States so long to make real decisions – especially when it comes to the unpalatable ones.
'This, as a result, doesn't naturally instil confidence in the economy. The proposals to alter the make-up of the States are a definite step in the right direction.
'The island needs to have confidence in its leaders.'
The survey is a joint project between the Young Business Group, the Guernsey Chamber of Commerce and BWCI and aims to present the views of the island's business community and to establish the business performance and confidence levels within the private sector.
