Nearly all of Scotland’s small and medium-sized enterprises (SMEs) plan to invest in growth over the next year, new Clydesdale Bank research shows.
But it also reveals that many companies north of the border fear ongoing funding availability issues could thwart their growth ambitions.
Clydesdale Bank, which last week cited low demand as a factor in a 9.4% year-on-year fall in its business lending, said its study highlighted 94% of Scottish SMEs wanting to spend money on growing their ventures during 2014. It added its survey also revealed that rather than looking to maintain the status quo or cut back, the need to keep pace with growing demand was currently driving investment among Scottish businesses.
Nearly three-quarters of firms (735) cited optimism as an important factor in their plans to invest, while only 14% said a lack of confidence was a barrier.
But nearly one-third of firms (29%) said they were concerned that difficulties getting access to funding could stymie their growth and 14% said finding new customers was their biggest challenge. Scott McKerracher, the bank’s regional director for the east of Scotland, said the overall findings were encouraging and echoed recent official growth figures.
He added: “They suggest many SMEs in Scotland are at the point where they feel more certain about investing in their businesses.
“As the majority of UK companies are small and medium-sized businesses, this has to be good for the economy as a whole.
“It’s important that we recognise and understand that there are still barriers to growth for some businesses.
“Access to funding has changed across the marketplace but it is available to well-managed businesses with strong plans for growth.”
The research findings coincide with Clydesdale Bank’s Business Week programme, which sees it offering SMEs the chance to understand what options and support are available to help them overcome any growth barriers they face.
More than 200 free events for local companies are taking place at the bank’s business and private banking centres throughout this week.
North-east firms working in healthcare have a chance to quiz national experts during a Clydesdale Bank Business Week seminar looking at key issues facing the industry. The event takes place tomorrow at the bank’s business and private banking centre at 1 Queen’s Cross, Aberdeen.