New research from independent SME funder, Bibby Financial Services (BFS), reveals that interest rates and political uncertainty are holding back many businesses from investing in the long-term business growth the economy needs.
Data from BFS’s Q1 2024 SME Confidence Tracker, which surveyed 1,000 UK SMEs, shows that over half (53 per cent) of SMEs are putting off making major investments until interest rates fall, while four in ten (43 per cent) are delaying investment until after the next general election.
Despite this, research findings reveal green shoots of optimism for the second quarter of the year. The data show businesses are more optimistic this spring, reflecting wider economic indicators pointing to an improved outlook for the UK. The majority of SMEs (61 per cent) predict an increase in sales over the next six months, compared to just 54 per cent in Q1 2023, a +7 percentage-point uplift year-on-year.
