Signs of ‘recovery and stability’ for Britain’s small and medium-sized enterprises (SMEs) have surfaced amid an increase in broker optimism, according to new data shared exclusively with City A.M.
The research, conducted as part of fintech firm Iwoca’s latest SME Expert Index, found that 73 per cent of the 80 brokers it surveyed felt optimistic about the future of Britain’s 5.5m SMEs.
SME optimism was up three percentage points compared to its first quarter survey earlier this year, and up six percentage points compared to the fourth quarter of 2023.
Colin Goldstein, Commercial Growth director at Iwoca, said: “Small businesses across the UK have endured a difficult two years, and our research with SME experts suggests there are signs of recovery and stability ahead.
“The fall in SME anxieties about the economy signals brighter months to come for small businesses, while the pinch of inflation and high interest rates eases.”
Less than eight per cent of brokers expressed concern over the business environment, but SMEs remain cautious.
Speaking at the Ambition A.M. Accelerator in London last week, Allica Bank’s chief executive Richard Davies said he was “hopeful” for the UK’s economic prospects after “a crazy last four or five years”.
However, he expressed that “it’s really hard to run a business when you don’t know what might happen next.”
“We need some stability politically, we need some stability outside the UK,” he said.
Iwoca’s SME index also highlighted political uncertainty, with 35 per cent of brokers saying there is positive hope for SMEs with the new Labour government and 33 per cent expecting little-to-no change for small businesses at all.