80% SMEs predict growth thanks to GDP rise

Rebecca McNeil, Head of Business Lending and Enterprise for Barclays, commented:

"There is no doubt that confidence is booming following the latest GDP figures showing growth of 0.9% for the second quarter of 2014. Small businesses are benefiting from a robust UK economic recovery, with turnover growth rebuilding momentum and today’s figures demonstrate just how far GDP has surpassed pre-recession levels.

"We’re seeing positive expectations from UK SMEs for future GDP growth, right into 2015 and as the heartbeat of the economy, it is vital that these businesses plan ahead and make the most of the opportunities available to grow in the coming months."

Barclays polled over 500 SMEs at the start of Q3 2014 on their outlook for GDP growth for the twelve months ahead, and the research reveals there is further optimism to come.

A majority of 67% of UK SMEs believe that the UK economy is set for growth over the next year. In addition, just under a quarter (22%) are predicting the economy will stay the same and only 4% brace themselves for a decline.

Out of all UK small businesses, large-sized SMEs are the most positive in their GDP predictions with 80% forecasting growth over the next twelve months, and mid-sized SMEs themselves as the second most confident with 70% expecting growth.

Furthermore, small businesses that were set up before 1990, are the most optimistic in their predictions for the outlook of the UK economy over the next 12 months, with nearly three quarters (74%) forecasting growth, resulting in a substantial predicted net growth of 74%.