Study reveals growing business confidence amongst UK SMEs as almost half predict revenue growth

Nearly five times more SMEs expect to see growth in revenues compared to those who expect revenues to shrink, according to new research from insurance premium finance company, Premium Credit.
Michael Crossland
By Michael Crossland
Published 25th Apr 2023, 06:00 BST

Research from Premium Credit’s Insurance Index, which monitors insurance buying and how it is financed, found nearly half (49 per cent) of SMEs are predicting an increase in revenue in the next 12 months. Around one in seven (14 per cent) are forecasting revenue growth of 25 per cent or more.

Adam Morghem, strategy marketing and communications director at Premium Credit, said: “SMEs have been through a tough period in the last three years with the COVID-19 pandemic being rapidly followed by rising inflation and interest rates.”

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“SMEs have been innovative and adaptable throughout the period as they react to pressures on cashflow."

Research from Premium Credit’s Insurance Index found that nearly half of SMEs are predicting an increase in revenue over the next year.Research from Premium Credit’s Insurance Index found that nearly half of SMEs are predicting an increase in revenue over the next year.
Research from Premium Credit’s Insurance Index found that nearly half of SMEs are predicting an increase in revenue over the next year.

Just 10 per cent of companies questioned predicted that revenues will shrink in the year ahead with 17 per cent saying they will stay the same. Around a quarter (24 per cent) were unable to forecast what will happen to revenues.

The biggest drivers of SME optimism identified by the research were plans to launch new products and expand into new markets.

Around 35 per cent expect revenues to increase following new product launches while 34 per cent expect to boost revenues by expanding into new markets.

Related topics:SMEs