60% of small businesses expecting to see growth in 2014
Research reveals SMEs in the north more likely to invest than those in south
Despite the increasingly upbeat tone around the macro-economic performance of the UK, the picture for small and medium-sized businesses is less clear when it comes to investing in the future, research reveals this week.
A study of 1,000 SME owners by funding specialist Bibby Financial Services, shows that despite 60% of businesses throughout the country expecting to see growth in 2014, a regional divide has emerged with more SMEs in the north of England looking to invest than their counterparts in the midlands and the south.
The survey reveals that exactly half of SME owners in the North East of England said they are planning to invest, but this figure fell to 35% in the South West and just 31% in the West Midlands.
In addition there is significant disparity throughout the rest of mainland UK as 42% of firms in Scotland are looking to invest in 2014 compared to less than a third (30%) in Wales.
Edward Winterton, commercial director at Bibby Financial Services, said: “It’s positive to find that so many businesses are expecting to achieve growth this year but it’s interesting to see that more SMEs in the north are planning to invest than those throughout the rest of the country.
“It seems that businesses in the Midlands and South of England are counting on organically rising demand as a way of achieving growth, whereas businesses in the north are taking growth into their own hands by investing for the future.”
The specialist invoice financier says now is the time for businesses to invest in growth and is calling on SME owners to review their sources of funding. Edward continued: “In order for businesses to invest for their future, they should consider the type of funding they have in place.
“More and more businesses are turning to invoice finance to enable them to unlock value in outstanding invoices; providing cashflow available for investment in recruitment, new product development and sales and marketing.”
