“Resilient” Yorkshire SMEs target turnover growth despite economic challenges

Yorkshire SMEs are expecting to grow or maintain turnover over the next 12 months despite the emerging economic challenges and cost increases, new research from Paragon Bank has found.

A survey of over 1,000 SMEs, conducted by Opinium on behalf of Paragon Bank, found that despite wider economic challenges, 53 per cent of SMEs from the Yorkshire & Humber region expected to record turnover growth over the next 12 months, with a further 24 per cent of SMEs expecting no change.

The level of confidence in growth is above the UK national average of 43 per cent, although the level of investment from businesses in the region has been slightly below the national average. 37 per cent of businesses said they plan to increase investment compared to the past 12 months, against 42 per cent nationally.

Just under a quarter (23 per cent) of Yorkshire businesses said they plan to reduce investment. Over a quarter of Yorkshire businesses (28 per cent) expect turnover growth of up to 5 per cent, with 11 per cent forecasting growth of between 5 per cent and 10 per cent.

A further 14 per cent expect growth of above 10 per cent during the period, the highest level of confidence in any UK region.

Half of Yorkshire SMEs (49 per cent) said that their business had grown over the previous 12 months despite the economic challenges and issues of the pandemic, with 28 per cent saying turnover had reduced.

When asked how they considered the current position of their business, a quarter of Yorkshire SMEs (25 per cent) described their business as thriving, with 65 per cent stating their business was stable. A further 11 per cent stated that the company was recovering.

Ashley Butterfield, Paragon Bank SME lending regional director, commented: “Yorkshire SMEs are demonstrating great resilience in some tough economic times and it’s fantastic to see such a high proportion of companies expecting to record turnover growth from the region, as well as planning to invest in their businesses.

“Of course, all companies will be contending with rising costs, but SMEs have proven ability to adapt and have the agility to react quickly to pivot their business to take advantage of any opportunities that may arise.”

By Matthew Neville – Correspondent, Bdaily

• Add me on LinkedIn and Twitter to keep up to date
• And follow Bdaily on Facebook, Twitter and LinkedIn
• Submit press releases to editor@bdaily.co.uk for consideration.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →