Tech and R&D investment biggest growth priority for SMEs in coming months

Research from London based asset manager BOOST&Co has revealed that business leaders plan to prioritise investment in tech and R&D as the biggest growth focus during the next few months.

The Geared for Growth report, which surveyed 500 UK SME leaders, found that 28.8 per cent of businesses are planning to focus investment on tech and R&D to improve or expand their business. Bringing in new talent to support expansion was the second highest growth focus, with 24.4 per cent of business leaders saying that this is a priority.

A focus on tech and R&D was most prominent in businesses in the East of England, London and Yorkshire. With SMEs in the manufacturing, retail, agriculture and technology sectors placing most emphasis on this as a funding focal point.

Research from Deloitte earlier in the year found that 94 per cent of CFO’s expect to invest more in digital technology for their business and 77 per cent expect to invest more in upskilling their workforce over the next three years. Evidently, businesses are placing technology and talent as key areas for investment going forward.

Despite appetite for tech and talent-led growth, the BOOST&Co research also revealed that many businesses are still feeling the effects of geopolitical disruption, such as the ongoing conflict in Ukraine and the Covid-19 pandemic, with 20 per cent of businesses surveyed citing recovering from the pandemic as their main focus for growth.

Joanna Scott, managing director at BOOST&Co commented: “Pandemic-induced factors such as mass home-working and rapid digitalisation increased many businesses’ reliance on technology. Business leaders are therefore enhancing their investment in this area as they seek to capitalise on the latest innovations and optimise efficiency.

“Unsurprisingly, the pandemic continues to have an ongoing influence on businesses’ growth ambitions. But now, as well as recovering from Covid-19 fall-out, SMEs are faced with a number of economic challenges that may impact their growth plans for the remainder of the year.

“As the cost of living crisis wages on and we begin to see the effects of the October energy price cap increase take hold, more businesses may be seeking funding support to ensure that their growth ambitions can still become a reality.

“SMEs should feel encouraged that there are a variety of funding options available, for businesses of all shapes and sizes, that can be accessed and utilised for investment in tech, talent or other growth strategies.”

By Matthew Neville – Correspondent, Bdaily

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