Third of SMEs take on growth challenge

One-third of small and medium-sized enterprises (SMEs) surveyed in a UK-wide study by the Clydesdale and Yorkshire banks said they were currently in a growth phase.

Two-thirds of these said they had further growth as an aspiration in spite of challenges due to economic uncertainty and the ongoing concerns around Brexit.

Slightly more than one-third (36%) of firms surveyed said they were currently in the sustain phase; maintaining their position but growing profitability.

Just under half of these (49%) indicated their main aspiration was to keep the business the same size, with 33% looking to grow further.

Overall, 40% of firms said their aspirations were for growth but they also identified a range of external factors which seemed to be influencing planning priorities.

Given ideal conditions, 43% of firms said their plans would include expansion of their workforce, with 33% saying they would be looking to invest in product development.

Actual priorities were somewhat different, with most firms (39%) preparing to cope with rising costs and just under onethird (32%) focused on planning for Brexit.

Graeme Sands, head of business banking, Clydesdale and Yorkshire banks, said: “The picture remains positive.

“The UK is blessed with many ambitious SME owners who are determined to invest and build their businesses, despite the economic uncertainty.”

“Weareblessed withmany ambitious, determined SMEowners”