Greater than three quarters (77 per cent) of small- and medium-sized enterprises (SMEs) count on to wish extra financing sooner or later, in accordance with new analysis from Funding Circle.
The SME lender discovered that UK-based enterprise house owners are displaying elevated resilience and optimism regardless of ongoing financial headwinds.
78 per cent of SMEs informed Funding Circle that they felt the financial challenges that they confronted throughout 2023 have elevated the resilience of their enterprise, whereas a rising variety of enterprise house owners reported “no issues” for his or her enterprise.
Learn extra: British Enterprise Investments: Addressing the SME funding hole
88 per cent mentioned that they felt equally or extra optimistic when trying on the subsequent 12 months.
Nonetheless, regardless of these inexperienced shoots, many enterprise house owners are nonetheless scuffling with the financial instability which has prevailed for the previous few years.
45 per cent of SMEs informed Funding Circle that they’d paused, cancelled or delayed an funding in 2023.
So as to unlock their progress potential, 77 per cent count on to wish to entry extra finance sooner or later, with greater than half of all companies (52 per cent) anticipating to take action within the coming 12 months – a 3 proportion level enhance from a yr in the past. Of these, 73 per cent count on to make use of this extra funding for funding and progress.
“Day in, time out we see outstanding innovation and adaptation from SMEs coping with a large number of challenges and financial uncertainty,” mentioned Lisa Jacobs, Funding Circle’s chief government.
Learn extra: Funding Circle to dump US enterprise after losses widen
“It’s encouraging to see some inexperienced shoots as rising numbers of small companies are reporting plans to increase over the approaching yr, which can be helpful for our communities, jobs and the entire UK financial system.
“Funding Circle seems ahead to backing these companies and supporting their progress with a lot wanted finance.”
The analysis paper, which was printed in partnership with Oxford Economics, additionally confirmed that Funding Circle’s financing options have reached companies in every of the UK’s 650 parliamentary constituencies final yr, with a mean of £1.5m per constituency.
In 2023, Funding Circle’s loans underneath administration supported a £6.9bn whole contribution to UK GDP, and was related to exercise stimulating £1.6bn in tax revenues.
Learn extra: Atom financial institution to lend additional £150m through Funding Circle
