SMEs across the globe are confident about future prospects: study

February 14th, 2017 – Small and Medium sized businesses across the globe are confident about their future business performance, optimistic about the economy and believe they have the strategies in place to thrive in an age of uncertainty, according to the American Express Global SME Pulse.

The research, carried out among senior executives and decision-makers in SMEs across 15 countries, reveals that SMEs are confident in their ability to deliver increased revenues and profitability.

Globally, across regions as diverse as the Americas, Asia and Europe, 58 percent of SMEs surveyed expect significant revenue growth over the next 12 months.

Healthy optimism

More broadly, SMEs across the globe are optimistic about the health of the world economy over the next 12 months, with SME decision-makers more than twice as likely to be positive than negative about the economic climate (39 percent positive versus 16 percent negative).

Economic and political uncertainty seen as key challenges

While SMEs are optimistic about the economy and their own business, they also identify areas for concern. Economic uncertainty in their home market is seen as the largest threat to the business.

Despite uncertainty, SMEs globally are focusing on growth and expansion strategies to improve their financial performance. Exporting is a core pillar of many SMEs’ growth strategies globally.

Seek more diverse sources of finance to fund growth

Many SMEs struggle to finance the investment required for growth. Thus, over the next year, SMEs plan to continue to take advantage of a diverse set of funding options. Their existing top options will remain important, but many SMEs will also be looking to non-bank sources of finance such as crowdsourcing and cards to gain access to capital to grow.

“The research shows SMEs are focusing on expansion and growth opportunities, reaching out to new markets and customers at home and globally,” said Jose Carvalho, Senior Vice President, Global Commercial Payments Europe at American Express. “However, it’s clear these enterprising businesses often find it difficult to access the finance they need to invest, and as a result they’re looking beyond traditional sources to secure funds to enable them to thrive and grow in the long term.”

Written by SMBWorld Asia Editors – www.enterpriseinnovation.net
Photo: The Optimist Daily

http://www.enterpriseinnovation.net/article/smes-across-globe-are-confident-about-future-prospects-study-1140946484