HSBC report highlights need for SMEs to invest
Failing to invest sufficient funds in business could be stifling potential growth and causing companies to lose out to competitors, according to a report from HSBC.
HSBC’s Ambitious Business report survey found that a third of small firms were not confident of investing and remained uncertain at what the market might do next.
This is despite the latest survey from Deloitte revealing a market that is upbeat and spending – a sign of some confidence.
Two of the key factors that are being put off concern decisions relating to recruitment and improving IT infrastructures.
According to the report, those that are failing to act are facing unnecessary threats that could potentially damage the businesses concerned.
“There is still a sizeable minority of businesses that are understandably cautious about the recovery and reluctant to make significant investments now,” said Amanda Murphy, head of business banking for HSBC.
“These firms risk falling behind their more ambitious peers, and we want to do all we can to help and support them in finding the right solution for their businesses.”
Failing to act could result in financial losses for companies and the potential threat of insolvency measures being required.
In such a situation where a business has concerns, it is important that firms act quickly to find suitable solutions before things escalate.
While insolvency measures and business restructuring cannot always save a struggling company, they can help to protect assets and support shareholders if approached early enough.
The report also highlighted that the general election which is due in 2015 was having an impact on the economy, with businesses uncertain of whether policies will continue.
Changes to approach would be likely should a different party gain power, resulting in many companies not being prepared to take risks.
However, investing sufficient amounts into the right tools and staff could provide the boost that is required to overcome any financial hardship in the long-term.
By Phil Smith