Recent growth drives UK SMEs to target ambitious plans

With close to half (46%) of all SMEs surveyed experiencing growth over the last year, many are now turning their sights onto more ambitious plans. Boosted by a surge of confidence86% expressed optimism for the year ahead with 27% stating they feel extremely confident about the future.

Shawbrook’s recent survey of growth-oriented businesses reveals a strong appetite for future expansion. Out of those that experienced growth, nearly half of financial decision makers/ business owners of SMEs surveyed (44%) are setting their sights on an initial public offering (IPO) within the next five to ten years. This ambition is further underscored by a significant number considering acquisitions (41%) and mergers (42%) as strategic growth levers.

The focus isn’t solely on external expansion, with 52% also prioritising internal growth through team expansions. Half (50%) of business leaders will be focusing on upskilling existing staff, with 53% planning to hire new staff and a further 52% looking to expand their leadership teams.

When considering finance, 45% of SMEs surveyed who have seen growth over the past year are planning their next funding round within five to ten years, highlighting their commitment to continued development. 51% are also planning to make a significant capital expenditure purchase and 49% plan to apply for a new loan or line of funding.

Neil Rudge, chief banking officer, Commercial, at Shawbrook said: “Stronger economic conditions are fuelling a new wave of growth for SMEs.

“Our research shows renewed confidence after a challenging period, with business leaders setting ambitious plans. This surge in activity aligns with discussions we’re having at Shawbrook, reflecting optimism across the UK economy. Building a strong partnership with a dedicated lender is key for SMEs. When lenders take the time to truly understand their business, financing becomes a strategic tool for success, not just a transaction.”