With 64% wanting more support and resources, Simply Asset Finance found that UK SMEs are hesitant about seeking help.
According to research conducted by alternative financial model provider Simply Asset Finance before of the 2023 Autumn Statement, 48% of small and medium-sized enterprises (SMEs) are unsure of where to find the assistance they need to grow and survive.
SMEs are reevaluating their prospects and attempting to chart a clear path for the future because interest rates are probably going to remain high for the foreseeable future. Approximately 64% of SMEs in the UK desire increased resources and assistance to help them and their companies.
“SMEs up and down the country are ready to seize on growth opportunities and be the engine of the UK’s economic recovery,” stated Mike Randall, CEO of Simply Asset Finance. However, substantial activity is needed to maintain the direction of UK business. Likewise, more needs to be done to make sure they’re prepared to take advantage of these chances. The government has a great opportunity to appropriately and significantly show its support for UK industry during the Autumn Statement.
Changing out outdated support systems
The assistance that is now provided has to be overhauled, and SMEs have voiced their concerns. Their primary policy request for assistance is the 33% increase in energy and utility rates. According to 29% of SMEs, they would prefer easier access to government grants and loans as well as improved financial support. In addition, there has been a 26% decrease in company tax and corporation tax relief.
Then, 34% of respondents said that the government should invest more locally to promote regional project development when asked what it can do directly to support growth. However, tax incentives are also thought to be important, whether they be for regional R&D work (27%) or recruiting work (28%), regional projects (29%), or both.
“Making it simpler for SMEs to invest in asset purchases would be a significant and cost-effective step,” Randall continues. The mere ability to expense it might completely change the landscape of company nationwide. However, given the magnitude of the task at hand, SMEs would feel more secure about their future if the Recovery Loan Scheme was extended or replaced with something else that had comparable goals. Not to mention the self-assurance to make the investment.
However, the assistance of a knowledgeable financial partner is essential. Lenders must improve their services and put in more effort to identify and communicate methods to assist SMEs. One important way to do this is by giving much-needed clarity on the variety of funding options—such as asset finance—that are available to spur growth. The growth possibility is substantial in scope. Nonetheless, industry and the government must work together to make potential a reality.
