Small and medium-sized enterprises (SMEs) have achieved significant turnover growth since 2019, seeing an increase of £327,304, according to Aldermore’s latest SME Growth Index.
The report highlighted that SMEs not only grew their turnover, but also experienced substantial customer acquisition and workforce expansion.
Since 2019, the average SME’s customer base has grown by 59%, with a 52% increase occurring in just the last year.
Additionally, headcounts have risen by 61%, indicating that SMEs are scaling their operations to meet demand.
Over the next year, businesses plan to invest £232,539 in growth strategies, a 28% decrease from the £321,048 invested in 2023.
SMEs said they were focusing their investments on enhancing their online presence, training staff, and acquiring equipment, with 32% of businesses prioritising online presence and staff training, and 31% investing in new equipment.
Medium-sized businesses reported that they were keen on investing in technology, such as artificial intelligence (AI), to drive efficiencies and unlock new opportunities, with 47% identifying this as a priority.
The research identified high inflation and energy costs as significant barriers to SME growth over the next 12 months.
High inflation was a concern for 34% of businesses, while 32% were troubled by rising energy costs.
Lee Rhodes, commercial director of asset finance at Aldermore, said: “The last few years have proven tough for SMEs, with businesses having to face one hurdle after the next.
“Despite this, SMEs have shown themselves to be resilient, enjoying healthy financials and strong customer and headcount growth.
“While SMEs may be investing less than they did last year, it’s encouraging to see businesses remain focused on enhancing and expanding their operations.
“While it may be uncharted territory for SME leaders who are scaling their business and unsure how to fund their growth, there are a number of business finance options available, which can help support them in this journey.”
