Simple Asset Finance: Micro and Small SMEs Still Need More Help To Reach Their Potential

Nineteen per cent of businesses are more inclined to invest in their business now that there is more clarity in the UK Government’s economic map findings Simply put Assets financesthe asset finance provider for businesses. However, smaller companies are less optimistic about the future.

The research revealed that last year, companies struggled with changes to national insurance and the minimum wage. However, after the October Budget, companies are feeling better about the future as they prepare to implement the necessary tax changes. However, small businesses have a bleaker outlook than medium-sized ones as Asset Finance only broke down the effect of Chancellor Reeves’ interventions.

Fifty-three percent of businesses questioned believe the recently announced reductions in business rates for retail, hospitality, and leisure will enable growth. Specifically for medium-sized businesses, 55 percent see the reduction of the business rate as an opportunity for growth, while 48 percent believe that the freeze on fuel duty will support their expansion.

In addition, looking at infrastructure investment, 46 percent of medium-sized companies expect transportation spending to boost growth, with 43 percent seeing energy infrastructure improvements as important. With these resources at their disposal, medium-sized businesses can be prepared to use these policies for continued success in the coming year.

Mike RandallCEO, Simply Asset Finance said: “The initiatives introduced in the recent budget are a silver lining for medium-sized businesses, with many measures that will apparently enable them to continue growing with the change -which provides the resources and stability needed for innovation and expansion. However, there is an urgent need to extend the same support to micro-enterprises endure extraordinary challenges and uncertainties that threaten their ability to thrive.

The smaller the business, the bleaker the outlook

More than half of micro-businesses (53 percent) believe that the increase in national insurance contributions will hinder their growth. This is more than the answers given by 46 percent of small businesses and 40 percent of medium-sized businesses.

Similarly, 46 percent fear the impact of potential tax increases on capital gains, a concern that is less expressed by small (40 percent) and medium-sized (38 percent) companies. In addition to this, micro-enterprises face the highest level of uncertainty, with seven percent unsure about their future—higher than two percent of small businesses and a percentage of medium-sized enterprises.

Randall added: “The reality is that there is no ‘one size fits all’ policy for SMEs – or for their financing. Policymakers, lenders, and industry leaders must work together to provide the support needed to help businesses of all sizes thrive, creating a more balanced and resilient future for the UK economy.

“For financial providers, it’s about flexibility and trust. Whether it’s by offering debt restructuring, showing investment channels, or exploring ways to help businesses manage through times change, there are concrete steps that can be taken to support SMEs and help them grow despite the current uncertainties strength and entrepreneurial spirit in UK businesses, can we unlock the potential of businesses of all sizes, expand support and promote a balanced and prosperous economy.