2016 hasn’t been the best year for British business. From the sale of Tata Steel to the closing of BHS and then of course the mounting uncertainty that the Brexit result has provided, there has been very little good news for those working in a lot of British industries.
That could be about to change though, with recent figures and comments from the bosses at a lot of SMEs hinting towards some positivity to their year ends. From more and more businesses using alternative finance options to grow their companies, such as the services offered by Touch Financial, to adapting their business models to ever-changing markets, there are many reasons for such positivity.
The latest survey released by the Confederation for British Industry (CBI) has found that one in four SMEs are optimistic about the economic outlook. A big part of this is to do with export orders remaining flat and not falling for the first time since mid-2014.
Brexit uncertainty has actually had a positive effect on exports too, with the weakened pound leading to higher demand and UK exports predicted to generate the strongest growth for a quarter since 1988, when records began. More exports equate to more business for many SMEs, giving them a good end to the year.
Positive Economic Situation
As Brexit negotiations roll on, there remains plenty of uncertainty about the future. However, a lot of businesses have got through the toughest part during the initial fallout from the result being announced and things are looking brighter.
The pound is becoming more stable and many SMEs are adapting their approach to deal with any fresh challenges. Many have reported an increase in total orders as well as exports, with a less tumultuous economic climate looking set for things to improve for SMEs.
Investor appetite in UK SMEs is increasing as well, the last two quarters delivering the best six-month performance since 2008. This has a lot to do with the pound’s weakening value, which has piqued the interest of many international buyers to invest in UK start-ups and SMEs.
With more interest in UK SMEs set to continue until the end of the year, this is providing a lot of opportunities for future investment. If all these factors continue for the next couple of months then the UK economy and world of business could start 2017 off a lot brighter than compared to the year before.