Member Article

Yorkshire SMEs believe economy ‘is in better shape’ as investment levels grow

SMEs in Yorkshire and the Humber region believe the economy is in better shape today than before the recession, with investment levels growing as a result, according to new research by Yorkshire Bank.

The new report shows SMEs in the region intend to invest, on average, eight per cent of their annual turnover back into their business and the UK economy in the next 12 months. This figure has increased since October last year when the UK average investment figure was six per cent of turnover.

Nearly half (48%) of SMEs in Yorkshire and the Humber region believe the UK economy is in better condition today than it was before the recession in 2008-2009.

However, the level of investment in the region remains lower than the national average, which stands at nine per cent of their annual turnover.

The research reveals the focus for Yorkshire and Humberside SMEs is to invest in new equipment, with a quarter (25 per cent) saying it is the top priority. This is followed by investment in new premises or improvements to existing premises, with 18 per cent saying that will be their priority.

Alan Young, Regional Director for Business and Private Banking at Yorkshire Bank in Yorkshire and Humberside, said: “We know from official figures that the UK economy is healthier in terms of production, job creation and export levels.

“Our nation of small and medium sized businesses is a good barometer to understand how well the economy is performing and our research shows SMEs are sufficiently confident in the economy to be increasing the level of investment in their businesses.

“When businesses are looking to invest it’s important that they have access to appropriate expertise and a wide range of financing options. Our relationship managers seek to develop a genuine understanding of each business they work with and as a result can be much more creative in how they support business owners.

“Our lending initiatives, that have been specifically designed to support SMEs, include providing capital free periods and 100% funding for premises and, together with our size, provide us with the agility and flexibility to continue bringing a genuine challenge in the SME market.”

This was posted in Bdaily's Members' News section by Ellen Forster .