The global economic situation continues to affect Sweden's small businesses, according to new statistics from fintech company Froda. The last quarter shows an increased need for capital to cover unforeseen expenses. The category has increased by as much as 25.9 percent compared to the corresponding quarter in 2021.
The fourth quarter has been marked by a rise in the key interest rate and high electricity prices. But despite the uncertain global situation, Sweden's small businesses continue to invest. For the second quarter in a row, there has been a continued increase in seasonal investments, up 13.5% from the previous quarter. Demand for financing to make renovations to businesses has risen by 11.6% compared to the same period in 2021.
- Inflation and increased electricity and interest costs are having a major impact on small businesses. The macro situation creates many uncertainties, which increases the need to cover unforeseen expenses and the need for an extra buffer. But we can also see that Sweden's small business owners continue to invest in their businesses, which indicates long-term confidence in the business despite tough times," says Olle Lundin, CEO of Froda.
During the fourth quarter, it can also be seen that Sweden's small business owners are investing in inventory, the category has increased by 9 percent compared to previous quarters and 7.1 percent compared to previous years. On the other hand, it can be seen that machinery investments are taking place to a slightly lesser extent, the category has decreased by 13.6 percent compared to the previous quarter and by 10.7 percent compared to the same month last year.
- The high cost situation probably means that those who can extend the life of their machinery and thus postpone such an investment, says Olle Lundin, CEO of Froda
About the statistics
Every quarter, Froda compiles statistics showing what Swedish small businesses invested in during the last quarter. The statistics come from Froda's databases and are based on information about thousands of companies.
Contingencies
+ 25.9% compared to the previous year.
+ 22.3% compared to the previous quarter.
Machinery
- 10.7 percent compared to the previous year.
- 13.6 percent compared to the previous quarter.
Purchases of goods in stock
+ 7.1% compared with the previous year.
+ 9.0% compared with the previous quarter.
General liquidity
- 6.3% compared to the previous year.
+ 2.7% compared to the previous quarter.
Seasonal investments
+ 2.4% compared with the previous year.
+ 13.5% compared with the previous quarter.
Renovation
+ 11.6% compared to the previous year
+ 1.9% compared to the previous quarter
Posted
January 11, 2023
