UK SMEs suggest the future is looking brighter with retail leading the way

AXA Business Insurance’s annual “Optimism Index” shows that 37 per cent of UK SMEs are more optimistic about their business than they were a year ago. The retail sector is currently up beat with eighty six per cent happy with the state of their business.

The index reveals that this time last year 35 per cent of SMEs were optimistic about the growth of their business over the following six months. This year this figure has risen to 63 per cent and for those in retail this figures is up at 71 per cent.

This optimism is reflected in planned investment in staff and other resources; 38 per cent of SMEs are planning to take on new employees in 2013 – a rise of over 300 per cent on last year’s figure of nine per cent. 53 per cent are planning to invest in new equipment or other resources this year – a doubling of last year’s figure of 25 per cent. Alongside this, 38 per cent of SMEs believe that their businesses will make more profit this year than they did last year and a further 38 per cent believe profit levels will be similar.

Over half of UK SMEs believe 2014 will be an even better year than 2013.