The last few years have been challenging for many small businesses, with rising costs and an uncertain business environment. As a result, the need to borrow to cover unforeseen expenses has increased. However, new statistics from business lender Froda show a reversal of this trend, as the need to renovate and invest in machinery increases.
The need to cover unforeseen expenses has increased among Sweden's small business owners in recent quarters. However, statistics from the second quarter of the year show a positive change: for the first time in a year, the need is decreasing and small businesses are investing for the future.
- It is positive to see that many companies are starting to invest and invest for the future again after a tough period. The fact that the need to cover unforeseen expenses is decreasing is a good sign, even if the levels are higher than a year ago. The fact that we see an increased willingness to invest in machinery and renovations indicates that Sweden's entrepreneurs have once again begun to look ahead," says Olle Lundin, CEO of Froda.
Sweden's small business owners have chosen to invest in improving the efficiency and quality of their operations during the second quarter of 2023. Froda's statistics show strong growth in investments in machinery and renovations, where investments in machinery have increased by almost 14 percent during the quarter and renovations have increased by 13 percent.
- The fact that investments in machinery and renovations are increasing shows that small businesses are committed to strengthening their businesses and meeting future challenges. Something that is important to maintain a competitive position in the market and ensure long-term growth," continues Olle Lundin.
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:
Compared to previous quarter: -21.8%
Compared to same quarter last year: 35.5%
Machinery:
Compared to previous quarter: 13.9%
Compared to same quarter last year: 31.7%
Renovation:
Compared to previous quarter: 13.0%
Compared to same quarter last year: 8.1%
General liquidity:
Compared with the previous quarter: 0.3%
Compared with the same quarter of the previous year: -10.6%
Inventories:
Compared with the previous quarter: -1.1%
Compared with the same quarter of the previous year: 8.1%
Seasonalinvestments:
Compared with the previous quarter: -17.5%
Compared with the same quarter of the previous year: -2.5%
Posted
July 10, 2023
