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Monday 23 September 2024 6:00 am  |  Updated:  Sunday 22 September 2024 1:20 pm

Optimism among UK SMEs rises for third straight year

By: Amber Murray

Retail Reporter

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Optimism among the UK’s small and medium-sized businesses has grown for a third consecutive year in a positive sign for the domestic economy, according to fresh data.

Around seven in ten SMEs said they felt confident about the future of their company, rising from 67 per cent in 2023 and 65 per cent in 2022, according to American Express research.

The data, which surveyed 1,000 UK SMEs, found that nearly three quarters of SMEs felt their business was in good shape, a five per cent uplift from 2022.

The most significant uptick in optimism was among firms with between one and nine employees, with 67 per cent feeling confident this year versus 62 per cent in 2023.

“The rise in small business confidence this year is encouraging, as small firms recover after an economically difficult few years and capitalise on many available opportunities to grow,” Michelle Ovens, Director of Small Business Saturday UK, said.

Over half of the respondents planned to invest more over the next 12 months to grow their business.

The data comes with news last month that the UK was on track for a record number of company creations in 2024.

There were a record 468,000 new business incorporations at Companies House in the first half of 2024. If the current pace is maintained, the annual total will surpass last year’s record figure of 879,000, which itself was up 10.6 per cent from 2022.

Big banks’ lending to UK SMEs, too, saw its first notable rise for almost two years during the first quarter of 2024, with lending jumping 27 per cent quarter on quarter.

American Express also provided encouraging signs when looking ahead to the remainder of the year; almost three-fifths of respondents—57 per cent—believed sales would be better in the fourth quarter of 2024 than in 2023 or 2022.

Amanda Salt, Vice President, Small & Medium Enterprises, UK Card Services at American Express, said: “It’s incredibly positive that more SME businesses are feeling confident about the future.

“While it remains a challenging landscape, business owners continue to show remarkable resilience as they focus on growth and delivering for their customers.”

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Iwoca closes bumper debt facility as sale speculation mounts

Christoph Rieche (right) and James Dear (left) co-founded Iwoca in 2011.

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