Yesterday, it was announced that scores from the Barclaycard Payments’ SME Barometer jumped from 79 out of a possible 200 points at the start of Q2, to 95 points at the start of Q3. It reveals that over a third - 36% - of SMEs share a positive outlook for their own business this quarter, up 15% versus Q2. Across all sectors, SMEs predict a 5% increase in revenue for Q3 compared to Q2, which grows to 14% over the next 12 months.
Businesses reported, on average, a 14% decline in revenue for their second quarter, compared with the first quarter. The drop was half as severe as the predicted 28% decline. Luke Davis, CEO and Founder of SME investment firm IW Capital, commented on the announcement: "The latest feedback from the SME Barometer is very much what we have been seeing when interacting with small and medium-sized businesses in the post-COVID economy. This, of course, is a time of uncertainty but small enterprises are nimble and adaptive to their environment, so it is no surprise to see that their optimism is growing. For those businesses looking to push on and grow, entrepreneurs and business leaders need greater support from the government to expand and be a vital part of the economic recovery post-COVID. The private equity community must also have confidence in the adaptability, resilience and opportunistic and enterprising nature of the UK's SME market to be the backbone of the economy for decades to come."