SME Investment and Financing Outlook Report: Survey Highlights (BDC Capital)

Summary

• Over 53% of SMEs believe economic conditions will deteriorate over the next 12 months.p.3
• Only 49% of SMEs plan to invest the same amount or more in their business over the next 12 months.p.4
• Confidence among SMEs planning to pursue intended investments fell to 82%.p.4
• Around 29% of SMEs requested financing in the last 3 months, with an approval rate of 77%.p.5
• Nearly 49% of SMEs believe that access to financing will be difficult.p.3
• Only 19% of SMEs plan to request financing over the next 12 months.p.5

Key insights

1. A majority of SMEs (53%) anticipate a deterioration in economic conditions over the next 12 months.p.3
2. Debt repayment is limiting business activities for 25% of surveyed SMEs.p.3
3. Only 52% of SMEs are deemed bankable, down by 5 percentage points from the previous survey wave.p.3
4. Investment intentions dropped below the 50% threshold, with 49% of SMEs planning to invest.p.4
5. Increasing efficiency is the most common primary investment goal for SMEs at 43%.p.4
6. High economic uncertainty remains the top limiting factor for SME investments, selected by 37% of respondents.p.4
7. The financing approval rate for SMEs requesting funds decreased by 6 percentage points to 77%.p.5
8. Main financial institutions remain the primary source of financing, used by 47% of requesting SMEs.p.5