The latest survey by Hitachi Capital Business Finance suggests that small firms are looking at securing funding to achieve 2021 business goals, indicating that confidence is recovering after a troubled 2020.
The Hitachi survey found that 56% of all owners of small businesses are weighing up seeking outside financing to help them realise the goals they have for their companies next year. That represents an increase on the figure for this time last year, when 53% of owners said the same. It is a surprising finding given the problems that the COVID-19 pandemic has caused for small businesses, but nonetheless a welcome one.
It is also an indicator that levels of optimism among small firms are recovering after a difficult year, and this is backed up by other findings in the Hitachi report. In the fourth quarter of this year, 27% of owners stated that they were anticipating growth, compared with just 13% during the second quarter. Furthermore, there was a large drop from 59% to 27% in those expecting to downsize during this quarter of 2020.
The survey saw 29% of small business owners say that financing would allow them to add more employees, while 27% would use it to launch fresh services or products and 22% for advertising. Restructuring their finances with the help of a small business accountant in Goole or anywhere else is another option for firms to raise cash without seeking outside financing.
Joanne Morris from Hitachi pointed out to London Loves Business that the results showed confidence was returning to pre-COVID-19 levels.