SME Finance Survey Report 2022
The British Business Bank commissioned Ipsos to undertake research to explore SMEs' (small and medium-sized enterprises) awareness, access and intentions around different finance options as well as the importance of net zero to SMEs.
The British Business Bank commissioned Ipsos to undertake research to explore SMEs' (small and medium-sized enterprises) awareness, access and intentions around different finance options as well as the importance of net zero to SMEs.
Our report was published as part of the British Business Bank’s ninth annual Small Business Finance Markets (SBFM) report (see also the press release).
Methodology
- The 2022 survey was based on 2,213 SME interviews, with fieldwork conducted between 12 October 2022 and 9 January 2023. The survey was available via CATI and online.
Key findings
Demand for finance was down and access to finance was more challenging
- 39% of SMEs sought or applied for some form of external financial support (down from 59% in 2021, which included Covid-19 support)
- Fewer SMEs obtained all the finance they needed from the first provider (64%, down from 80% in 2021)
But expectations for growth were quite positive
- 39% expected to grow over the next 12 months (compared to 41% in 2021 and 21% in 2020)
- 43% were considering applying for external finance in the next 12 months
- However, there were barriers to SMEs seeking finance, especially the cost of finance and debt concerns
SMEs’ awareness of alternative finance has improved over time
- Awareness of the types of alternative finance we asked about was higher than it was pre-pandemic, except for awareness of leasing / hire purchase, where awareness has not yet recovered to 2019 levels
Environmental sustainability
- 33% of SMEs said they were making their business more environmentally sustainable
- However, fewer SMEs said it was a high priority (46%, down from 57% in 2021) with current economic conditions being the top obstacle to becoming more environmentally sustainable
