Quarterly Barometer: Cash Flow, Investment, and Growth of SMEs (Rexecode)

Summary

• 46 % of SME leaders plan to invest this year, marking a slight rise of +1 point this quarter.p.2
• The proportion of SMEs reporting cash flow credit access difficulties stabilized at 20 %.p.2
• Obstacles in securing investment loans declined to 16 %, falling slightly below the long-term average.p.2
• 62 % of SME leaders state that the Middle East conflict has already negatively impacted their cash flow or financial results.p.3
• Supply difficulties surged significantly, with 57 % of respondents reporting challenges (+22 points over the quarter).p.3
• 58 % of SMEs use artificial intelligence, with 48 % relying on it on a daily or near-daily basis.p.3

Key insights

1. Weak demand remains the primary constraint to business growth, cited by 61 % of SME executives.p.3
2. Marketing and sales is the top application area for AI, utilized by 47 % of SMEs adopting AI.p.3
3. 15 % of SMEs exposed to the Middle East conflict consider their current cash flow insufficient to absorb the shock.p.17
4. 66 % of SMEs impacted by the Middle East conflict cite higher energy commodity prices as the main transmission channel.p.16
5. 78 % of investing SMEs prioritize replacing obsolete or worn-out equipment.p.10
6. 61 % of SMEs used short-term credit to finance current operations, remaining below the long-term average of 68 %.p.8