Positive energy – SMEs still growth-oriented

SMEs see the future as being perhaps a bit brighter, and the protracted economic uncertainty has not reduced their desire for growth. Outside financing is being sought for not only working capital, but now also enterprise development.

Compared to the results of last spring’s SME Barometer Survey, the economic expectations of enterprises have taken a turn for the better. Nearly one out of every three SMEs expects the economic situation to improve in the next 12 months. Also where investments are concerned, the expectations are slightly better than before, even though the trend remained on the minus side.

Despite the unstable economic situation, SMEs’ desire for growth and internationalisation is still moderate: 8 per cent of enterprises report being strongly growth-oriented, while 34 per cent plan for growth wherever possible.

There has been no change in the availability of outside financing and SMEs intend on applying for it slightly more than before. Interest in outside financing has grown, particularly among strongly growth-oriented companies. Even though the desire to invest is currently weak, there are signs of an upturn. Financing is primarily being sought for working capital, and one key reason that enterprises seek outside financing is to develop their operations.

- According to the autumn SME Barometer Survey, interest in obtaining internationalisation financing has dropped in all sectors, while, on the other hand, strongly growth-oriented enterprises show a clear desire to expand by internationalising. Right now, the most important thing is to line up needs and offerings and make sure that not a single profitable project falls outside our network of Team Finland organisations, says Finnvera CEO Pauli Heikkilä.

The Federation of Finnish Enterprises, Finnvera and the Ministry of Employment and the Economy jointly conduct the SME Barometer Survey twice a year. The aim is to examine the operations and economic operating environment of small and medium-sized enterprises. The autumn 2015 Barometer Survey is based on the responses submitted by more than 6,500 SMEs.