Funding Circle finds SMEs are planning for post-Covid growth
Funding Circle has found that many small- and medium-sized enterprises (SMEs) have grown during the Covid crisis and now plan to reach more customers and launch more products.
A survey of 1,000 SME owners commissioned by the peer-to-peer business lending platform revealed that a quarter feel more prepared than ever thanks to the experience they gained during the pandemic.
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Over the past 18 months, more than a third (35 per cent) said they managed to navigate the crisis better than expected and on average, SMEs said they grew by 6.2 per cent, despite the challenges they faced.
Over the next 12 months, a third of SMEs plan to reach out to a new customer base, a quarter will launch new products and 29 per cent are aiming to grow their online sales.
However, 30 per cent are concerned about the rising costs of inflation and 27 per cent are worried about keeping up with overheads.
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“As business owners reflect on the last 18 months, it’s welcome to hear their experience has better-equipped them to handle any obstacles which may lie ahead,” said Lisa Jacobs (pictured), UK managing director at Funding Circle.
“With the economy not quite out of the woods, the UK’s small businesses will continue to play a vital role in powering the recovery, and it’s exciting to see their confidence and optimism resulting in so many plans to expand and grow.”
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Last month, insolvency practitioners Real Business Rescue revealed that the number of SMEs in distress dropped by 9.75 per cent in April to June, the first quarterly decline since before the pandemic.
According to data from the British Business Bank, four in 10 businesses used external finance in 2021.