Small- and medium-sized businesses in the UK are more positive about the future outlook for their firms, according to a report published by SME Finance Monitor.
Figures showed that 78% reported a profit in 2014, which has increased from 2012’s 69%. A lower number also expressed a worse than average external risk rating at 45%, which has been declining since 2013.
The ‘current economic climate’ has been pinpointed as a major obstacle to small- and medium-sized firms for a while, however the proportion of those citing it as such has decreased over time. 17% considered it an obstacle in 2014, compared with 34% in 2012.
This report follows a recent rise in UK inflation for the first time in the last five months.
20,055 interviews were analysed in 2014 as part of the study. Attitudes to external finance, exporting and importing, business planning, age profiles, plans for growth and debt repayments were also evaluated.
BDRC Continental Director Shiona Davies believes that ‘it is encouraging to see positive signs that point to the good health of many of the country’s SMEs.
‘From profitability to future plans to grow, from paying down debt to improved risk ratings, there’s a real sense that SMEs are moving forward.’
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