Growth in business revenue has surpassed expectations for small and medium-sized firms in Yorkshire, says a report.
Some 65% of SMEs in the region say that their business revenue has grown in the past 12 months – compared with just 43% at the same time last year.
The figures are drawn from the Close Brothers Business Barometer, an independent quarterly survey of SME owners and managers from a range of sectors across the UK.
Mike Randall, chief executive of Close Brothers Asset Finance, said: “The Office for National Statistics states that the UK recovery is progressing faster than anticipated and our figures seem to suggest that small and medium-sized businesses are really benefitting from improved trading conditions.
“More than two-fifths of the businesses we surveyed in Yorkshire and Humberside report up to 10% growth in revenue, while just over half cite a jump of between 10% to 20% in the last year.”
The Close Brothers Business Barometer shows business confidence to be high, with 64% of local SMEs optimistic about their growth prospects for the year ahead.
The survey also reveals that almost half of respondents plan to invest in their business in the next 12 months.
“It’s very important that these businesses plan ahead to ensure they can make the most of an increasingly prosperous economy,” said Mr Randall.
“In particular, these firms must be proactive with their financial planning.
“The Business Barometer shows that 19% of those surveyed in Yorkshire and Humberside say that a lack of finance is currently holding them back from seizing new business opportunities.
“This is somewhat concerning as without the necessary working capital, growth will be very hard to achieve.
“It’s essential that businesses explore a broad range of funding options to ensure that they succeed in meeting their forecasts for next year.”
