Investment and Financing Outlook Survey Report: April 2024 (BDC Capital)

Summary

• Overall, 61% of SMEs reported being profitable over the last 12 months.p.4
• Among SMEs planning to invest, 83% were not confident they would pursue their investment plans in the next 12 months.p.5
• High economic uncertainty at 37% and interest rates at 35% were cited as the primary factors limiting investments.p.5
• Of the SMEs that requested financing in the last 3 months, 79% were approved.p.6
• Growth-related projects accounted for 44% of intended financing uses among SMEs planning to request funds.p.6

Key insights

1. A total of 83% of SMEs reported operating below full capacity operation.p.4
2. The proportion of SMEs deemed bankable reached 58%, up by 6 percentage points from the previous survey wave.p.4
3. Becoming more efficient or productive was selected by 41% of investing SMEs as their main investment goal.p.5
4. A primary financial institution was targeted by 72% of SMEs seeking financing in the last 3 months.p.6
5. Short-term financing options were planned by 67% of SMEs intending to seek financing.p.6
6. Perceived ease of access to financing improved, with 58% believing it will be easy to obtain.p.6
7. Software was the most cited intangible asset category for upcoming SME investment at 54%.p.24