SMEs Start Feeling Pumped Again, Says Shawbrook Study
After a few rough years, small and medium‑sized businesses are finally swapping their gloomy faces for bright smiles. A brand‑new survey from Shawbrook shows that almost nine out of ten — b86 %— report feeling confident about where their company is headed. One‑fourth (27 %) even swears they’re extremely confident, while only a few (4 %) admit to feeling completely cold‑hearted on the issue.
Top Concerns Are Still the Same, but the Mood Is Turning
- Economic uncertainty: 66 % worry about it.
- Political uncertainty: 51 % flag it as a worry.
With a new government in office, macro‑economic conditions easing, and a summer interest‑rate cut on the horizon, these worries may not loom as large as before. Instead, business owners are eyeing the next twelve months with ambitious plans on the table.
Growth & Priorities for 2024
- Growth last year: 46 % of SMEs experienced expansion, a whopping 29 % jump from last year’s data.
- Primary focus: Boosting profitability (52 %) remains the top goal.
- Other key priorities:
- Improving productivity – 51 %
- Managing rising costs – 50 %
- Team matters:
- Upskilling existing staff – 47 %
- Recruiting and growing a new team – 44 %
- Retaining current talent – 39 %
Expansion, Digitalisation and Sustainability
- Digital transformation – 32 % are planning to upgrade their tech stack.
- New markets/exporting – 29 % set their sights abroad.
- Acquisition plans – 16 % may buy another business in the next year.
- Business consolidation – 13 % are eyeing a merger of their own operation.
- Net‑zero targets – growing at 27 % of owners.
Funding Still a Sticky Issue
Half of the SMEs (51 %) insist that getting the right kind of funding to match their growth ambitions is a major headline worry. Neil Rudge, Shawbrook’s Chief Banking Officer for Commercial, greets this fact with a hopeful grin:
“With inflation settling down and a Bank of England rate cut on the docket later this summer, businesses can finally look forward to the future. It’s heartening to see confidence return after a rocky stretch.”
“As demand for funding rises, we’re noticing more owners waiting on the sidelines – but they’re ready to launch. The right financial partner means they can unleash their full potential.”
“Since so many SMEs still feel uneasy about access to funding, there’s a clear call for the industry to step up. A specialist lender with deep experience and bespoke solutions is the kind of partner that can help these businesses find the exact financial match they need.”
So, if you’re a small business owner staring down a bank, it’s not just about ending uncertainty – it’s about seizing new growth, sharpening up your team, and maybe setting a net‑zero target… all while finding that perfect loan to make it happen.
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