SMEs across the globe, especially in Turkey, North America and the Middle East, are showing increasing confidence, demonstrating signs of recovery in the first half of 2010.
This is according to HSBC’s small business confidence monitor, which noted that SMEs in emerging markets are more confident than those in developed markets.
According to HSBC’s findings, SMEs across the globe plan to increase capital expenditure (41%), expand their workforce (26%) and hold a positive view towards local economic growth (84%).
In Turkey, 56% of SMEs expect the pace of growth to increase. They are also the "most confident" country in the world according to the figures.
Shaun Wallis, global head of business management, commercial banking at HSBC comments: “Our research indicates confidence levels across the globe and particularly in the emerging markets are stable and are back to pre-financial crisis levels. Whilst it may be tempting to argue emerging nations will be affected by the weakening Western economy, we think that there are three important channels that suggest the emerging markets will continue to grow.
“The first is related to trade. Emerging nations trade with each other and are therefore less exposed to the Western economy. The second is the low return on Western assets which will encourage investors to put more money into the emerging world. Driven by high commodity prices, the final is the major redistribution of income from the Western markets into the emerging nations.”
The semi-annual monitor gauges the outlook of SMEs on local economic growth, capital investment plans and recruitment. It is the largest international survey of its kind covering over 6,300 SMEs across 21 markets in Asia, the Middle East, Europe, North America and Latin America.
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