A new report suggests that a third of the small and medium -sized companies of the UK (SMEs) depend on research and development (R&D) to provide their growth plans for 2025.
Despite the difficult economic conditions, the research “tailored to 2025 growth” indicates by growth member of alternative financing provider that strategic investments in technology, talent and innovation can help many companies remain competitive.
According to the findings, 33% of SMEs see R&D as central in innovation and long-term success, while 40% anticipate revenue growth of 5% and 10% in the coming year. Investments in advanced digital tools and processes are also an important priority, in which 16% of the respondents emphasize technological integration – such as AI, automation and cloud computing – as an important engine of their expansion plans.
This focus on R&D extends beyond new products. Many companies use innovation to refine the activities and respond to the shifting of market requirements, so that they remain relevant in rapidly changing sectors. However, challenges remain. With competent work in the short stock, 12% of SMEs mentions Talent shortages as an important obstacle and 16% place talent acquisition in the heart of their strategy to guarantee future growth.
In commentary on the study, Kimberley Martin, director of Growth Lending, said: “The challenges of the current economic environment continue to exist for SMEs. With increasing costs and talent shortages that create extra barriers to growth and innovation, companies must focus on strategic investments to remain competitive.
“R&D is a crucial growth motor, which allows companies to innovate and adapt to changing market needs. The difficulty is that traditional financing options do not always meet the needs of fast -growing companies, with rigid criteria and long application processes that limit their suitability. To bridge this gap, alternative lenders can offer the flexibility and understanding that is needed to support ambitious SMEs, so that they can overcome these barriers, invest in innovation and build up resilience in 2025. ”
With technology and talent at the forefront of their plans, British SMEs seem increasingly confidence that they can endure economic uncertainties. Whether it is quickly scales or is just separate from the crowd, many rely on R&D and digital transformation to protect a competitive advantage in the coming year.