Business performance expectations
There have been a lot of pessimistic headlines regarding European economies suggesting the continent could tip into recession. However, our research shows European small and medium sized enterprises (SMEs) are more optimistic about the continent’s prospects.
52% of SMEs surveyed say they are looking to expand into a new European market in the coming 12 months.
The current climate presents a varied set of macro- economic challenges for businesses and many of the economic indicators make for sobering reading.
The general sentiment of business leaders and decision makers across Europe as to whether their companies will be profitable in the coming years belies this.
The overwhelming majority (93.5%) rate the long-term prospects of their businesses - over the next five to 10 years - as positive.
Moreover, 52% of SMEs surveyed say they are looking to expand into a new European market in the coming 12 months, with 44% eyeing a new market outside of the continent.
More than a third (34%) of firms already operating in a country outside of their home market say they plan to open a new office or branch somewhere else in Europe.
This echoes the positivity exhibited by many large investors, who tend to take a long-term view on firms and economies.
Asset management giant JP Morgan, for instance, recently released a note to clients tipping European stocks over the US.