SMEs plan average £97,000 spend on coronavirus bounce-back

Smaller firms plan to spend an average of £97,000 to grow their business in 2021 and help kickstart their recovery from the pandemic, new research suggests.

Over the next 12 months, one in four small and medium-sized enterprises (SMEs) will invest in their online presence, with one in five advancing their digital marketing, according to a study by alternative lender Aldermore.

Meanwhile, one in four firms will spend on new equipment and 20 per cent will invest in their staff through training. Others plan to diversify into new products and services, while 10 per cent will invest in greener or more sustainable activities.

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Tim Boag, group managing director, business finance at Aldermore, said: “It’s encouraging to see that SMEs are investing in their recovery from the Covid-19 pandemic. Recent data reveals a vastly improved near term outlook for businesses, with the easing of restrictions.

Smaller firms plan to spend an average of £97,000 to grow their business in 2021 and help kickstart their recovery from the pandemic.

“Confidence from SMEs is growing, and this is reflected in plans to invest in the growth of their businesses in order to recover effectively from the pandemic.”

Business confidence is now at its highest level since 2014, according to the research.

Boag added: “During the peak of the pandemic last year, we launched our ‘Small But Mighty Businesses’ campaign to share real stories of SMEs who were tackling the challenges of Covid-19, and how they were innovating and supporting each other.

“We’re now launching new content and providing additional guidance to SMEs including tips on how they can effectively recover from the pandemic, by future proofing their business against future shocks and investing in their business long term.”

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