Every year, Swoop asks our customers a series of questions about their businesses: whether they expect to grow, add employees, apply for funding and so forth. The results always make interesting – and sometimes, counter-intuitive – reading.
Going through the findings for this year, there is a noticeable rise in optimism from our customers, which you might not expect if you take the “if it bleeds, it leads” headlines at face value.
For example, 31 percent of respondents reported feeling “much better” about their business prospects compared to 26 percent the previous year, while 44 percent indicated a “slightly better” outlook (a major improvement on 18 percent who gave the same answer last year). For full disclosure, these responses came in between the UK election and the budget, so although the NI rise has been disappointing for SMEs, the fact that we’ve been hit would not have come as a surprise to the respondents.
Let’s pull back to a wider view of how SMEs see the markets they operate in: when asked about their confidence in the future of their market, a significant number of SME owners expressed optimism. 42 percent were “somewhat positive” (26 percent in 2023) and 40 percent were “extremely positive” (24 percent in2023). This indicates a strong belief in the long-term growth potential of their industries.
Similarly, 92 percent of respondents expect their revenue to increase over the next 12 months (up from 78 percent last year), which demonstrates a clear intention to drive growth and expansion.
A quick health warning on the data
After the UK budget, with pressure being piled upon SMEs to provide the growth the government wants while seeing incentives for business owners being pinched, these findings are incredibly encouraging. It is worth remembering, however, that survey respondents are self-selecting and may not be the same respondents as last year: there is a margin for error. That said, we are not seeing a total collapse in confidence.
My view is that while SME owners are feeling optimistic, they still require support from the government to fully realise their potential: SMEs need clear policies that can help the people who make up the backbone of the economy to achieve their ambitions.
Policies such as changes to IHT on farm land take up media space but these changes affect very few farmers; there are more practical steps that the government could take in the short term to help farmers, and indeed other SMEs.
Swoop has called for more concrete steps to help businesses, such as reducing bureaucracy, improving access to finance and investing in skills and training – all crucial steps to create a favorable business environment.
By addressing these areas, the government can empower SMEs to drive economic growth and innovation.
A promising future
Looking at the bigger trends it’s clear that people feel there is growth to be had, both as a business and as a market. The still-new government has made a lot of noise about supporting SMEs, but there is still much work to do to convince business owners that their growth next year is supported by the government, rather than in spite of it.
