In the first quarter of 2024, a wind of optimism is blowing Global SMEs, according to the latest International Business Report (IBR) by Grant Thornton. analysis, conducted on over 2.500 mid-market businesses globally, reveals an increase in confidence in the economic future, with optimism increasing by 1% compared to the 65% recorded in the second half of 2023. Driving this trend are 'Europe andItaly, with a confidence index that jumped from 51% to 53% (+2%) and from 43% to 48% (+5%) respectively.
Growing profits and technology at the center of investments
A positive signal is recorded on profits: 62% of businesses globally expect an increase in the next twelve months, an increase of 2%. In Europe, the figure reaches 48% (+6%), while in Italy it even rises by 11%, bringing the percentage to 53%.
The optimism seems fueled by the investments since sector technological, an increase of 5% globally (66%). In Europe, it went from 46% to 56% (+10%), while in Italy the data indicate an increase of 12%, reaching 59%.
Similarly, investments in research and development they mark an increase both globally (+3%, 55%), and in Europe (+5%, 45%), and in Italy with an increase of 8%, bringing the percentage to 51%.
Optimism about exports and foreign markets
The perspectives on export look bright: 46% of companies globally expect an increase in business on foreign markets, with an increase of 3%. In Europe there is a growth of 8%, while in Italy, with an increase of 5%, the percentage reaches 40%.
The number of companies that expect an increase in the number of countries to which they can export their products is also on the rise: globally it has grown by +2% (42%), at European level it stands at 36% (+7%) and in Italy it reaches 48% (+18%).
Fears and worries
However, not everything is rosy. The companies indicate some sources of concern for the future, including the cybersecurity, the economic uncertainty, cost of labor and the availability of labor qualified.
50% of companies globally worry about cybersecurity, while in Europe and Italy the figure stands at 44% and 56% respectively.
Economic uncertainty, although globally decreasing by 1% (56%), in Europe and Italy shows an increase of 1% (48%) and 12% (67%) respectively.
Concerns related to labor costs increase globally, going from 51% to 53% (+2%). A similar trend is recorded in Europe with an increase of 3% (47% vs 44%), while in Italy, the country which shows the highest percentage of companies concerned about the increase in labor costs, the figure rises to 63%. , with a growth of 12%.
Comments
“The start of this year brings with it a renewed sense of optimism for mid-market companies globally, highlighted by a small but significant increase in confidence in economic growth – he commented Alessandro Dragonetti, managing partner and Head of Tax at Bernoni Grant Thornton –. This trend is more marked in Europe and Italy, where the data highlights a notable resilience in the face of global challenges, such as inflation, rising interest rates and geopolitical tensions, and has as its main effect a strengthened widespread optimism from the forecasts of increases in profits and sales prices for next year".
“Although European and Italian companies appear less confident in the possibility of transferring the increase in inflation to final prices – continued Dragonettii – this attitude does not seem to limit their propensity to invest, especially in key areas such as Information Technology, research and development and staff training, confirming the fact that sustainable growth requires a combination of investments in both technology and talent".
