Over half of UK SMEs lack confidence in growth strategies amid tough climate

More than half (57%) of UK SMEs lack confidence in their ability to build and execute a competitive growth strategy to thrive in the tough economic environment, according to Nucleus Commercial Finance.

The credit environment looks to remain challenging. Over the next three years, almost half (46%) of SMEs believe accessing credit/finance/borrowing will get more difficult. This level of perceived difficulty rises to 64% for those working in the hospitality, food/drink, retail, and wholesale sectors.

This means that successful growth strategies will be even more important for UK SMEs to not just survive but thrive. When asked what would be the most beneficial to help implement a successful growth strategy within the next three years, a quarter (24%) said it was having better access into the financial decisions and trends across their industry. A further 24% also said having more up-to-date technology infrastructure would be useful.

Chirag Shah, CEO and founder of Nucleus Commercial Finance, commented: “At a time when business costs are continuing to rise and the economic outlook is far from promising, UK SMEs are calling out for more support. For the sector to not only survive over the next 6 to 12 months, but in order to be truly successful, it is imperative that they have better access to more holistic support.

“Indeed, with the newly appointed chancellor, Jeremy Hunt indicating the energy bill relief scheme may be reworked, with the Treasury set to review to develop a more targeted system for consumers and businesses from April 2023 – running costs continue to pose a real threat for businesses.

“With so many harbouring significant growth ambitions over the next three years, there is a big gap to close to ensure SME owners can actually achieve these objectives. By taking advantage of innovative data-led insight, businesses can chart a realistic but ambitious growth strategy for the future.”