The majority of small and medium sized enterprises in the UK expect to invest in their businesses over the next three months according to research from Bibby Financial Services (BFS).
The independent funder surveyed 1,000 businesses with a turnover of up to £25 million in June as part of its SME Tracker, and 59% said they will invest in the three months up to October.
It is estimated that over a quarter plan to invest in technology and equipment (27%) – one in five (20%) said they will recruit new staff and a quarter (23%) said they would invest in employee training.
When asked about expectations for the months ahead, 57% said they expect to achieve sales growth and only 7% foresee a decline in orders in the three months leading up to October.
CEO, David Postings said: “Across the SME population in the UK this equates to 2.9 million businesses investing over the months leading up to October, which is obviously very positive for the economy.”
“These results are positive as they show owners and management teams investing in the long-term future of their businesses.”
“If businesses have the financial means to grow, then undoubtedly they will need to take-on staff, move to larger premises and buy equipment and machinery, which all have a positive multiplier effect on the economy.”
“But too often, ambition is stifled by cash flow issues, such as late payment or customer insolvency so having funding in place is a huge advantage and can facilitate these plans.”
The Gross domestic product estimates announced in July show that the UK is returning to pre-recession levels and Postings says the latest findings highlight longer-term growth aspirations among smaller businesses.