Yorkshire SMEs set for multi-billion pound investment drive as confidence in economy grows – Yorkshire Bank
YORKSHIRE’S small and medium-sized enterprises (SMEs) are ready to invest more than £8bn of their own turnover into the UK in the next 12 months as their confidence in the economy improves, according to new research by Yorkshire Bank.
New equipment, staff training and creating jobs are top of the shopping list for Yorkshire SMEs, which according to the research, plan to capitalise on improving economic conditions by growing and investing in their own businesses.
Opinium Research carried out the online survey of 1,168 UK SME decision makers from April 17 to May 8 2014. Nearly nine out of ten (89%) Yorkshire SMEs said they plan to make a significant investment in their business in the next year. On average, Yorkshire SMEs are set to invest around 8% of their turnover back into their businesses. Based on official figures, this could be worth around £8bn to the Yorkshire economy.
This investment is being driven by their confidence in the wider UK economy with 72% believing it will grow and provide a strong environment for their own growth prospects, the survey said. And on average, Yorkshire SMEs expect to grow by around 11% in the next year – which could represent an increase of as much as £12.6bn in turnover, or nearly £36,000 per Yorkshire SME.
While most industrial sectors showed signs of confidence in themselves and the economy to grow, agricultural, manufacturing and construction businesses appear to be the most bullish.
While the survey suggests a mood of confidence and ambition amongst the majority of SME owners, it was also recognised that a number of barriers to growth still exist. The lack of available finance is the most pressing issue for around 2% of Yorkshire businesses while just over 1% feel red tape is delaying their growth plans.
Alan Young, regional director for Business and Private Banking at Yorkshire Bank, said: “An increasing level of confidence is playing a critical role in fuelling the recovering economy, and our ongoing research indicates that as business optimism returns, the SME segment in Yorkshire is actively preparing to change up a gear to take advantage.
“Compared to this time last year, we believe an increasing number of businesses are now preparing themselves for growth. New staff, premises and equipment are the tools which will allow businesses to create that growth.
“The message we are hearing from the majority of Yorkshire SMEs is they feel there will be opportunities for them to grow in the year ahead, and we are ready to support those growth ambitions.”
The upswing in sentiment is evident across the UK but with particular peaks in the North East of England, East Midlands and Scotland.
This new research comes as Yorkshire Bank launches Business Week (May 12-16) which will see more than 250 customer-focused events staged at the bank’s UK-wide network of Business and Private Banking Centres, including Yorkshire centres in Leeds, York, Doncaster, Sheffield and Bradford.
