Iwoca: SME brokers “tentatively bullish” on future

A new survey from business lender Iwoca has found that brokers for small- and medium-sized enterprises (SMEs) are “tentatively bullish” on the future, following a long period of pessimism.

According to the latest data from Iwoca’s quarterly SME Expert Index, during the second quarter of the year 73 per cent of SME finance experts felt optimistic about SMEs’ futures, while just eight per cent felt pessimistic.

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Optimism was up by three per cent quarter-on-quarter, and by six per cent compared with the fourth quarter of 2023.

Brokers also indicated that just over half (56 per cent) of SMEs feel positive about their future business environment, while recession fears were down by seven per cent.

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However, SME brokers were lukewarm on the new government, with just one third (35 per cent) saying that the new Labour government will be positive for small businesses, while 33 per cent felt that there would be no change, and 32 per cent believe the new government will be bad for SMEs.

“Small businesses across the UK have endured a difficult two years, and our research with SME experts suggests there are signs of recovery and stability ahead,” said Colin Goldstein, commercial growth director at Iwoca.

“The fall in SME anxieties about the economy signals brighter months to come for small businesses, while the pinch of inflation and high interest rates eases.”

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