Yorkshire SMEs predict growth despite economic challenges

A survey of over 1,000 businesses, conducted by Opinium for Paragon Bank, found that more than half of Yorkshire SMEs expected to record turnover growth over the next year.

A further 24 per cent predicted that growth will remain at the same level as the previous year.

John Phillipou, Paragon Bank’s director of SME lending, said: “SMEs are the backbone of the UK economy and, as this new research demonstrates, even though they are continuing to face a series of challenges they remain resilient and plan to continue growing and investing in the year ahead.

“Their success is fundamental to our country’s growth prospects and it is vital they have access to the financial support and tools necessary to meet the challenges they may encounter.”

Just under a quarter of Yorkshire businesses said they plan to reduce investment, while 37 per cent of businesses said they plan to increase investment compared to the past 12 months

Half of Yorkshire SMEs (49 per cent) also said that their business had grown over the previous 12 months despite the economic challenges and issues of the pandemic, with only 28 per cent saying turnover had reduced.

Only 42 per cent of businesses nationally said their business had grown over the past year.

While the research highlights predicted turnover growth and increased investment in the year ahead, it also identified challenges which Yorkshire SMEs say they are preparing for.

Cost increases, the impact of Brexit, staff recruitment and retention, inflation impacting customers, and supply chain disruptions, were all cited as potential risks to businesses.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

Ashley Butterfield, Paragon Bank SME lending regional director, said: “Yorkshire SMEs are demonstrating great resilience in some tough economic times and it’s fantastic to see such a high proportion of companies expecting to record turnover growth from the region.