Investment challenges facing SMEs in 2023.

There’s no denying that the last few years have been challenging. The pandemic, a cost of living crisis and a controversial budget all created the perfect economic storm; one that UK businesses and property investors have found themselves caught in the middle of.

But our research shows that, while the next 12 to 24 months will still be challenging for SMEs, there is significant appetite for expansion and growth when the time is right.

In fact, 90% of forward-thinking company owners and directors are preparing to turn on the investment taps and take on projects such as employing new workers, expanding their premises or accelerating new product development.

More than half (61%) of respondents also stated that they have plans to invest in property. One in five (20%) plan to use their finances to extend their current premises, whilst 15% plan to build entirely new premises, and 14% said they plan to move. In addition, a further 12% of the business leaders said that they plan to acquire new premises when the economy returns to stable grounds.

However, almost a fifth (18%) of businesses are concerned about access to finance for future expansion, with only 13% able to access all the funding they need from high street banks.

Chris Baguley, Managing Director at Together Corporate, says:

“We spoke to hundreds of business leaders to understand their appetite and, although SMEs are understandably cautious about investing right now, the results do demonstrate that this is simply short-term and it’s encouraging to see that many of these SMEs are optimistic and already planning for future investment.

“In the current market, some lenders are becoming increasingly cautious, which means that businesses and individuals could struggle to access the right level of funding in the timescales they need.

“Fortunately, property finance experts such as Together will be able to support UK SMEs in meeting their ambitions as the economy starts to bounce back.

“Following our initial research, we’ve conducted a series of other studies to create an insightful look into the property market, helping our customers understand the potential impacts on commercial and residential property markets in the coming year and beyond.

“We’ve paired the results of the research with in-depth analysis and market knowledge to give an insight into both the macro-economic environment and the resulting property trends, to help weather whatever challenges the 2023 property market may face, and to help spot the opportunities these turbulent times could present.”

Read the full Property Market Report 2023:

*Research commissioned by Together and conducted by Opinium research between 18th and 25th October 2022 of business leaders from 300 UK SMEs (6-250 employees).