Why are fewer SMEs investing in their company?
Small and Medium Enterprises (SMEs) are finding the current economic climate challenging, with many reluctant to invest for fear of losing their business entirely.
We want to understand the hesitation behind the lack of borrowing so that your business can get the support it needs to succeed.
What is causing the lack of investment?
A recent survey conducted by Barclays Bank found that 80 per cent of SMEs did not borrow any cash to invest in the 12 months up to August 2025, half of whom had considered investing but failed to follow through.
Rather than investing, many SMEs are focusing on short-term aspirations such as nurturing their team, increasing marketing activities and product development rather than thinking long-term about investment and new revenue avenues.
The survey showed that only 53 per cent of SMEs plan to increase investment in the next 12 months, and SMEs currently have the lowest loan application rate.
What can businesses do to increase their chances of investing?
While investment levels may be low, businesses can still explore growth opportunities, and that begins by assessing their current financial situation.
You need to clarify if your business has the scope to invest in its next stage of growth, so you will be looking at current revenue, turnover and profit margins alongside your ongoing operational costs.
Having a clear picture of your business’s finances allows you to make the right decisions on whether to invest now or wait until the time is right. You can also spot potential and see where money within your business can be generated or saved.
This is where working with an accountant can help. They can help you analyse your finances and future plans to give you an idea of the costs involved. By understanding your company’s finances, you put yourself in the best possible position to make the best business decisions.
Support is available for SMEs
If you are looking to take your business to the next level, our expert team can help. We can help you build a clear picture of your company’s finances through tailored advice and support.
We’ll help you analyse your income and expenditure, look at your current and future plans, and give you the tools to make the right investment decisions for your business.
For expert financial advice, contact our team today.
