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SMEs expected to grow by 8% in 2021, study shows

Friday 19 February 2021 13:33 CET | News

A study conducted in the UK showed that SMEs are expecting a steady rise in revenue this year as vaccination programme continues to roll out at pace.

Small and medium enterprises (SMEs) are getting ready for post-pandemic life, 32% saying they are prepared for the end of national lockdown measures. SMEs predict an 8.1% rise in revenue in 2021, and nearly 39% say they are optimistic about their prospects. Though the future still looks uncertain for many, 24% say their output has already surpassed or returned to the pre-pandemic levels of January 2020.

The quarterly Barclaycard Payments SME Barometer also shows business sentiment is starting to look more positive, at 98 points out of a possible 200. While any score under 100 indicates negative sentiment, this is the highest score reported since the beginning of the pandemic. Sentiment has risen steadily over the past three quarters from a low point of just 79 points in Q2 2020 compared to an initial pre-pandemic high of 110 in February 2020.

However, though cautiously optimistic, SMEs are still weary of continued upheaval, and are braced for further short-term losses, anticipating an initial revenue drop of 7.5% over the first three months of 2021.

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Keywords: SMEs, study, UK, Payments SME Barometer, business sentiment, smes recovery, end of lockdown
Categories: Banking & Fintech
Companies:
Countries: United Kingdom
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Banking & Fintech