Two in five SMEs expecting growth in next few months

A new report suggests that almost two fifths (39 per cent) of UK small and medium-sized enterprises (SMEs) are anticipating strong growth over the next few months.

Meanwhile, business confidence is booming across many sectors and industries, despite a backdrop of political and economic uncertainty.

The research, which was carried out by Hitachi Capital Business Finance in January and published earlier this week, found that the tech and telecommunications sector was feeling the most confident in the short-term, with more than half (52 per cent) of small businesses predicting growth in the first quarter (Q1) of 2018.

However, the transport and distribution sector was noted as the industry where business confidence had improved most quarter-on-quarter, with the number of SMEs anticipating growth up from 22 to 35 per cent.

70 per cent of small business respondents mapped out their plans to secure growth in the months ahead.

The key strategies cited by SMEs included keeping costs down, improving cash flow and investing in new equipment.

Meanwhile, one fifth (18 per cent) added that they were planning on expanding into new markets, and 15 per cent said that they hoped to recruit new members of staff.