NEW research conducted by specialist business lender Simply Asset Finance has shed light on the challenges faced by Scottish small and medium-sized enterprises (SMEs). Rising operational and supply chain costs have emerged as significant concerns for Scottish businesses, hindering their ability to invest in productivity solutions and business growth.
According to the research, 79% of Scottish SMEs are worried about rising operational costs, while 76% express concerns about supply chain expenses. These financial challenges have left many businesses unable to invest in vital areas such as technology and equipment, with only 18% investing in new technology and 25% in equipment and machinery over the past year.
The average Scottish SME currently has approximately £78,000 set aside for contingency costs. However, due to rising costs, 26% of businesses have had to restructure their finances, with just 9% indicating this was to aid business expansion. Additionally, 86% of businesses expressed a willingness to restructure their debts, highlighting the need for more suitable funding options to support their growth.
While 30% of Scottish SMEs feel their needs are misunderstood or overlooked, the research also revealed a resilient optimism within the business community. Despite the challenges, 77% of Scottish SMEs remain optimistic about the future success of their businesses.
Commenting on the findings, Mike Randall, CEO at Simply Asset Finance, emphasised the need for suitable funding and support tailored to the unique requirements of Scottish SMEs: “Operational and supply chain costs are a clear issue for Scottish businesses, and firms shouldn’t need to hold back cash that could have been invested in growth. This could help give them much-welcome breathing room that they just didn’t realise was now available.”
The research, conducted by Censuswide among 796 SME business leaders in the UK, also highlighted the need for clear and understandable financial solutions that enable businesses to navigate economic challenges effectively.
Simply Asset Finance, which recently surpassed the £1 billion lending milestone, has been providing innovative financial solutions to support SMEs, helping them seize growth opportunities and overcome financial hurdles.
