Investment in small businesses increasing despite concerns over Brexit
Almost three quarters of SMEs intend to invest in their business over the coming year despite Brexit concerns, according to new data from the Small Firms Association.
Areas in which firms are focusing their investment on include brand development – cited by 21pc of firms as an area in which they intend to invest, and staff, which was cited by 19pc of those surveyed as an area in which they will be investing in.
Other areas of investment plans include IT and market diversification.
“It is very positive to see that 51pc of SFA members are growing and 72pc intend to invest in their business over the coming year.
This is up from 65pc six months ago, demonstrating a clear sign of growing confidence in the small business sector and that firms are now realising the importance of Brexit-proofing their business,” Sue O’Neill, SFA chairperson, said.
However only 7.9pc of those surveyed said that their current financing priority was new borrowing.
“Our survey results indicate that businesses are restricting their growth ambitions to what they can finance from retained earnings or personal savings which is a cause for some concern,” O’Neill said.
“The sources of finance available to businesses have never been so diverse. There is a product out there to suit almost every business– the challenge now for small firms is to understand the different finance options available to them and identify the right mix of bank and non-bank finance for their individual business,” she continued.