A new survey has found that two thirds of UK small and medium sized businesses have said their confidence in the economy has stayed the same or increased over the past year, despite concerns about Brexit and I’m not surprised.
We might be seeing huge scale macro developments, but at the micro level, people have the same problems day in day out, regardless of Brexit or Donald Trump winning the American elections.
To some, the world may seem more chaotic, but to business owners, life continues as normal.
I believe that SME’s are more positive not because of these macro political or economic changes, but because of changes happening in the financial services sector. This sector is undergoing disruption and democratization, with a lot more access to funding then there was ever before.
Today, SME’s are not at the mercy of banks. They have access to boutique balance sheet lenders (like Access Commercial Finance), peer to peer lending and equity crowdfunding.
Access to finance is what fuels the growth of SME’s and help them in turn to help the economy by creating jobs. The increased availability of finance is what I believe brings optimism to the SME sector.
Without funding for small businesses, our economy and country will not continue to grow and flourish in the way we’d like it to – and guess what we are flourishing. 45% of SMEs expect growth of up to 10% this year, while a further 9% expect their revenue to grow between 11 and 20%, making small businesses optimistic about their turnover this year.
Looking at it from another perspective, there is also a revolution in business today. Small is the new big and consumers as well as businesses want to deal with smaller businesses where they can get more of a personal touch, and better priced goods.
With technology, smaller firms are able to outsmart large corporates in providing an enhanced customer service. They can also run their businesses more efficiently new age technology, whilst corporates continue to be straddled by legacy systems. Today, it’s not inconceivable for micro organisations to compete head on with giant corporation – usually for the same customer.
With agility, better use of technology and greater access to finance, SME’s have good reason to be more optimistic.
Despite Brexit topping the list of SMEs’ concerns, people are staying positive and this has given small businesses the boost and confidence they need to invest in themselves and their business, where there is change there is also opportunity for business.