SME growth and confidence on the up despite growing workforce challenges.
More than a third of SMEs have recorded growth over the last quarter, a survey has found.
Some 37% of British SME decision-makers cited that their businesses expanded during the third quarter, the latest Zurich SME Risk Index has recorded.
Moreover, over half (56%) of British SMEs are confident the economy will improve further over the next year, a marked increase on the 37% who were confident in last year's survey.
The level of SMEs concerned over the economic climate has edged down to 68% in October 2013 from 84% in the same month of 2012.
However, the report also highlighted a rise in SMEs concerned about workforce challenges, from 32% last year to 40% during the last quarter.
Key person dependency, the availability of a skilled workforce, the retention of talent and employee morale and stress were highlighted as the biggest perceived workforce risks.
Meanwhile, the risk of not being able to train staff is also at its highest level (14%) since the index began. Among further market concerns were domestic competition, regulatory requirements and inflation.
Richard Coleman, director of SME at Zurich, said: "While it's very encouraging to see levels of economic concern and perceived levels of business risk both at their lowest points since the index began, the focus should now be on making recent economic growth sustainable.
"It's about ensuring that the business environment out there for British SMEs remains as stable as possible, so as to provide a solid base upon which businesses can invest and flourish."
