Half of Yorkshire and Humberside SMEs expect a boost in turnover going into 2023, new research shows
The research from Paragon Bank, carried out by Opinium, has found that a further 29 per cent of SMEs are predicting cashflow to increase in the first quarter of 2023, with 47 per cent anticipating that it will remain steady.
Commenting on the research findings, Ashley Butterfield, Paragon Bank SME lending regional director, said: “After a challenging year for the UK economy, Yorkshire and Humberside SMEs are demonstrating both resilience and optimism for the year ahead.
“With predications for businesses to either grow or maintain current turnover and cashflow rates, SMEs are well placed to play a key role in our national economic recovery.”
Anticipated improvements to cashflow and turnover has led to optimism for the year ahead, with 39 per cent of Yorkshire and Humberside SMEs saying they felt confident about the future.
45 per cent of firms predicted they would maintain their current success.
For businesses in Yorkshire, confidence in themselves is also greater than confidence in the UK economy as a whole.
Of those surveyed, only 26 per cent of Yorkshire and Humberside SMEs expressed confidence on how the economy will perform – but this increased to 50 per cent when considering the sector in which they operate.
The optimism of Yorkshire and Humberside SMEs in their businesses is matched by planned investment in their operations.
85 per cent of businesses said they planned to invest in research and development, while 77 per cent said they planned to spend on staff recruitment and commercial vehicle investments.
77 per cent also said they planned to invest in their existing premises and machinery or equipment.
Commenting on the research findings John Phillipou, Paragon’s managing director of SME lending, said: “With expectations for growth and plans to invest in their businesses, SMEs are ready to help the economy recover from the challenges of recent years.
"It is clear from the research data that SMEs are optimistic and resilient, and it is therefore vital that they can continue to access the financing required to support their growth plans.”