UK SMEs and Their Future Post-Brexit
With the Brexit deal still locked in controversy and confusion, accompanied by pessimism in the press about the economic implications. It is easy to feel downhearted about investment for UK SMEs and the mid-market in particular.
However, it’s not all doom and gloom. The majority of SMEs surveyed by the newly released Q2 2018 SME Growth Tracker has not delayed any business decisions because of Brexit. The Growth Tracker is a quarterly report by Capital Economics, based on a YouGov survey of over 1,000 UK SMEs on growth prospects and the wider economy.
Results from the survey show that confidence is up in some SME sectors. Positive developments are expected in the coming year. Exporting SMEs predict export volumes to go up by 0.5% in the coming year, while digital SMEs are expecting a growth of 1% in e-commerce revenue, having seen a 0.4% rise in the past year.
There is still appetite for funding SMEs, with various means available. Rockpool, who provide funding for growing companies, is expecting to invest over £100m this year alone. Investec also recently acquired Lombard North Plc’s block discounting portfolio as part of its continued commitment to financing SMEs through block discounting. While also providing capital to SMEs through its innovative Investec Capital Solutions.
In addition, Barclay’s has started offering SMEs a cashback finance incentive. This is backed by a £300m guarantee from the British Business Bank, in order to help UK SMEs grow more quickly. European small business lender iwoca has also just reached profitability this year. They have lent £200m to 20,000 businesses since starting in 2012. These are just a few of examples of continuing investment in the SME and mid-market space.
It is normal that political change breed anxiety over the future. However, investment in SMEs and emerging mid-market companies is still happening with plenty of success stories. If you know where to look and get the right support and advice, exciting opportunities continue to abound.
Avondale are EME business advisors. Through our management consultancy, we support growth and scaling up. Through our M&A and corporate work, we secure investment and finance for EME businesses, help people buy and sell companies and enhance shareholder value. We recognise ambitious owners who require ambitious, specialist advisors.