INVESTMENT CONTINUED FOR SMALL BUSINESSES IN THE NORTH WEST

Small businesses in the north west of England could be set to invest almost £9.4bn into the UK economy in the next 12 months as confidence grows in Britain as a good place to do business

According to new research by Yorkshire Bank, issued to mark the start of its third Business Week*, 59% of small business owners and senior decision makers in the north west believe the UK economy will grow in the next 12 months.

The north west’s population of 481,000 SMEs are set to match that confidence with their own investment plans with 80% set to invest. Key areas such as new equipment, staff training and increased marketing on top of the investment priority list.

The research suggests each small business, on average, plans to invest 6% of its turnover. This equates to around £19,500 per small business according to the latest official statistics of the UK’s SME population**.

However, some reservations around economic conditions and potential barriers to growth still linger, with around a third believing a lack of available finance could be restricting investment intentions, and around one in four believing the Government have a bigger role to play in supporting SME growth.

Phil Tarimo, (pictured left) regional director for Yorkshire Bank, said:

“Changes in economic conditions will be felt more acutely by smaller businesses, but they are also quicker to adapt and take decisions to invest in growth opportunities such as taking on more staff, buying new equipment or developing new products and services.

“Our research suggests that small businesses feel favourable economic conditions are providing them with the confidence to invest and exploit growth opportunities.

“More people are employed by smaller businesses than any other sector of the economy, so a thriving SME community is vital to wider economic growth. Small business owners need to feel confident that the investment they make in their businesses will generate a return and be the catalyst for further growth.”

NEW SERIES OF LENDING INITIATIVES

In further efforts to boost confidence in the business community, earlier this year Yorkshire Bank introduced a series of lending initiatives for new and existing customers designed to support the growth of small and medium sized businesses:

• Extending the repayment term of existing loan facilities for appropriate customers.  This will help to improve cash flow by reducing monthly loan repayments and allow for re-investment in their business
• Re-advancing loans, allowing appropriate business customers’ access to draw repayments they have already made on a loan for re-investment within their business.
• Funding to allow businesses to buy their trading premises, and depending on the circumstances, this could be up to 100% of the premises value
• Capital free periods – we will consider Capital “free” periods up to 5 years for customers in certain situations, such as where they are investing in their business

*The new research comes as Yorkshire Bank launches its third Business Week which will see more than 250 events across the UK designed to help businesses invest, connect and network where it matters most.

The week of events and seminars from 10^th – 14^th November will cover a wide variety of topics from sharing sector expertise and best practice, supporting entrepreneurialism, customer service, exporting and buying and selling a business.

www.cbonline.co.uk/business/business-week/