5 Azets SME Barometer Report Summer 2021 Zooming in more closely, these are our key findings: SMEs are generally optimistic about the economic recovery: nearly two-thirds of all businesses expect their turnover to increase this year. SMEs in Finland, Sweden and Denmark are most optimistic, while businesses in the UK and Norway are less so. Businesses in the professional services and technology sectors are also more bullish than those in retail, hospitality and leisure. UK North-South divide visible as optimism stronger in the southern half of the country: in the UK, regional differences point to a continued North-South divide and highlight the ongoing levelling up challenges. SMEs across the board retain confidence in their business model, seeing it as their greatest opportunity in the year ahead. Notably, SMEs in the Nordics recognise AI and digitalisation as a key opportunity – more so than those in the UK. However, concerns remain. Adapting to a post-Covid world is SMEs’ biggest opportunity and threat: businesses consider Covid, competition and the economy still to be the three biggest threats they face in the coming 12 months. And for UK SMEs outside London and the South East, Brexit remains a major threat. Financial health, adapting the business model and employee wellbeing are the top priorities for SMEs: top priorities overall for SMEs are all about making sure the basics are in place to secure the financial health of the business. This focus on the essentials means that, for many SMEs, digitalisation, cybersecurity, and sustainability come further down the list of priorities. Positive signs for SME business growth and jobs: despite these worries, looking ahead, 60% plan to recruit more staff in the next 12 months and over half (56%) will invest. SMEs in general felt well supported by governments during the pandemic. SMEs across Europe call for continued support from government to help them adapt post-Covid, in particular through lowering the tax burden and simplifying the regulatory and administrative demands. Majority of UK SMEs trading with Europe have been impacted by Brexit: international trading ambition is down for all. Among UK SMEs trading internationally, half have experienced difficulties since Brexit and 13% have ceased trading with Europe, either temporarily or for good. 30% of SME business leaders say they have a poor work-life balance. Even though Covid-19 is still considered a great threat, it is such a joy to see from the report, that there is an optimistic attitude towards the economy and the business climate in general. The results of the SME Barometer show us that technology has moved further up on the agenda– and that’s positive! At Azets we assist companies every day with the digitalisation of their business processes, and of course there is no doubt in our mind that a company that prioritizes and utilizesthe benefits of technology and digitalisation stands much stronger! The past years have been tough on most SMEs,but now the outlook is much more positive.We sense the same emerging positive and optimistic attitude when talking to our customers – and it’s so good to see that the results from the SME Barometer are confirming this! June Mejlgaard Jensen Azets Denmark and Sweden, MD Contents Contents Contents Contents download report download report Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets Foreword Summary of findings About the study Key findings Economic outlook Business outlook UK levelling up Opportunities and threats Priorities ahead Investment and borrowing Government support International trade and Brexit Personal impact About Azets