Despite continued uncertainty, 57% of SMEs across seven European markets feel positive about the future and think that economies will recover to pre-Covid levels within the next two years, according to a research conducted by CapitalBox, leading online pan-European SME funding platform.
A further 18% are still confident about a recovery, but believe it will take at least two years. However, when it comes to their own businesses’ recovery as opposed to the wider economies, over half of SMEs (51%) feel that their business will in fact recover this year, in 2021.
SMEs in Finland are the most confident in their own business recovery in 2021 (57%), compared to:
- 50% in France
- 50% in the UK
- 48% in Germany
- SMEs in Spain, with 27%, are the least confident in their own recovery
Optimism for the new year mainly comes from the agriculture (60%), real estate (58%), business services (55%), and food & drink (55%) industries. As hospitality looks towards a new normal in the new year, 52% are confident of their business recovery this year. The least optimistic industries for the new year are healthcare (28%) and wholesale, retail and franchising (31%).
Most of this optimism is reflected in how trusting SMEs are in their respective governments’ support. 53% of SMEs stated that they are certain their governments will continue to provide the right support going into 2021. The most confident in their government support are those most optimistic SMEs, in Finland (58%), France (51%), and the UK (55%). On the other hand, the least confident are SMEs in Spain, with 35% of respondents not feeling like their government will provide the right support moving forward.
Scott Donnelly, CEO of CapitalBox commented: “The pandemic continues to have a big impact on businesses and economic recoveries around the globe, and there is certainly a bumpy road ahead to get there. SMEs in Europe, however, are confident that this new year will bring positive changes, and that their businesses will return to growth. As the backbone of many economies, it is great to see SMEs being optimistic about the future and the ‘new normal’, putting effort into getting back on track.”
“As small and medium businesses look toward a road of recovery, it is critical that the right financing is available to them to help guide them. From government support to alternative lending, they need to feel confident in their recovery in 2021. At CapitalBox, we will always strive to help those financially underserved SMEs.”