25 things we learnt from our Business Barometer

Appetite for investment

• Over four out of five (84%) of Professions firms are planning to invest in their business in 2024

Missed business opportunities

• A lack of access to finance has resulted in many businesses (58%) missing out on a business opportunity

Economic outlook

• Business owners are cautiously optimistic about the prospects for the economy in 2024, with 49% confident that the economy will grow

Predicted business performance

• Most business owners (49%) expect to either grow or tread water for the next 12 months

Acquisitions

• 45% of Professions say there has been a rise in the number of acquisitions

• Two thirds of business owners have considered an acquisition to grow – or acquire – their first business

• Business owners are confident about where to go to fund an acquisition (70%), and also how to arrange the funding (67%)

Artificial intelligence

• Most businesses (78%) think Artificial Intelligence will have an impact on their operations – it’s just not clear what that will be

• There is concern among 63% of Professions about what the increasing presence of Artificial Intelligence could mean for their business

• Over half (57%) of firms are looking to incorporate Artificial Intelligence into their business processes at some point

• 41% of business owners are unsure about whether Artificial Intelligence will lead to large scale job losses in their profession   

• Despite the prospect of potential job losses, many business owners (58%) think Artificial Intelligence presents opportunities for growth and employment

Cost of borrowing

• The cost of borrowing has increased for around half of businesses (53%)

• Many firms (45%) have looked to switch funder because of increased interest rates

• 57% of business owners said that higher interest rates have resulted in them becoming more open to ‘alternative’ forms of funding

• Around 3 in 5 firms think interest rates have peaked

• Two thirds of Professions business owners have increased their prices to compensate for the rise in interest rates

Customer service

• Having a personal named contact at their business lender is important for 90% of business owners

• Being able to self-service online with their business bank is also important for 90% of business owners

• ‘Trust and experience’, ‘flexibility’ and ‘rate’ are the most important factors when deciding which funder to work with

• Having expert knowledge is the single most important factor that determines good customer service

Business growth

• Interest rate rises, inflation and energy costs have had the biggest impact on firms’ growth plans over the last decade

• Energy costs, inflation and interest rates remain firms’ main concern

• Around 80% of businesses have passed additional costs onto customers as a result of the increased cost of doing business

• The increased cost of doing business has caused cashflow issues for around half of business owners 

To read the full results please visit braemarfinance.co.uk/sme-data