SME Confidence Tracker: Confidence returns, little by little
“Overwhelmingly, business leaders are positive about the future with more than two-thirds expecting sales to grow, and more than half planning to invest in their businesses over the coming months. The hidden costs-of-doing business, such as late payment and bad debt, however, continue to pose challenges for SMEs, as well as accessing funding for growth and expansion.”Derek Ryan, UK Managing Director, Bibby Financial Services
Summary
Alongside the General Election result putting political uncertainty to rest, falling interest rates and stabilising inflation have provided a boost to confidence among small and medium sized business owners. The results of our latest SME Confidence Tracker highlight this optimism, with over two thirds (68%) expecting sales to grow in the next six months, and more than half planning to invest in their businesses over the coming months.
Conversely, half (49%) believe the external finance landscape is complex and disjointed and 60 percent say they wish they had further support available regarding how best to fund their businesses. Bad debt is on the rise, and the perennial issue of late payment poses a genuine threat to the plans of SMEs. As well as shedding light on the current pressures being faced by SMEs during this transitional period, our latest SME Confidence Tracker highlights areas of support SMEs require from the new Government.
Key findings
- 68% of SMEs expect sales to grow in the next six months
- 52% leaders say they feel more inclined to make major investments in their businesses
- 63% of SMEs say lower interest rates make them more confident about investing in their business
- 87% of SMEs want the new Government to implement better tax incentives to help them
- 33% leaders have never heard of the Bank Referral Scheme
- 49% think that the external finance landscape is complex and disjointed
What is the SME Confidence Tracker?
Launched in 2015, the SME Confidence Tracker is a regular study of SME owners and decision makers across the manufacturing, construction, wholesale, transport and services sectors. The study is based on a poll of 1,000 UK SMEs, and tracks views of business owners on a range of subjects including current performance, legislation, Government policy and investment plans.
