After the EU referendum, big businesses may be contemplating moving headquarters overseas, but SMEs are planning with confidence, a new study reveals.
Hitachi Capital Business Finance asked 1,006 small and medium sized enterprise owners what best described the outlook for their company over the next three months.
The study finds an 11 per cent increase in confidence from last quarter. Not only has confidence bounced back, it is at an all time high for 2016.
Small business confidence has peaked following a dip in uncertainty in recent months. Overall, 43 per cent of the UK’s SMEs feel positive about the future when asked about their outlook.
During the months of July to September there was some uncertainty as to the outlook for the future for the UKs SMEs, while bigger companies are talking about packing up and relocating across the continent, SMEs have played a waiting game and are feeling the most confident as to the outlook of their business than they have all year.
From the third quarter to the last three months of the year, there has been a big jump (9 per cent) from SMEs that say their organisation would stay the same to those who say that they expect to see significant or modest growth.
Small businesses that are worried about their outlook during October to December matches the lowest it has been for 2016 as well as being lower than it has been in the last two years (14 per cent Q4 2014 and 12 per cent Q4 2015).
When looking at small business confidence over the last two years, despite 2016 being an eventful year when it comes to economic highs and lows, SMEs in the UK have been flexible and have adapted quickly, giving an overall positive impression for the remainder of the year.
Gavin Wraith-Carter, managing director at Hitachi Capital Business Finance, believes the research goes on to show just how resilient SMEs in the UK really are and that no matter what is thrown at them, small businesses are able to bounce back and turn a negative situation into a positive outcome.
Wraith-Carter adds, ‘As a provider of alternative finance to small and medium sized enterprises, it is reassuring to have this positivity and to be able to see the bigger picture fully. As our customers grow we grow with them and welcome the news that SME confidence is on the up. Whatever the weather we will always be here to support them.’